Stochastic game theory: for playing games, not just for doing theory.
182 Citations•1999•
Charles A. Holt, J. Goeree
Proceedings of the National Academy of Sciences of the United States of America
By relaxing the classical assumptions of perfect rationality and perfect foresight, much improved explanations of initial decisions, dynamic patterns of learning and adjustment, and equilibrium steady-state distributions are obtained.
Abstract
Recent theoretical advances have dramatically increased the relevance of game theory for predicting human behavior in interactive situations. By relaxing the classical assumptions of perfect rationality and perfect foresight, we obtain much improved explanations of initial decisions, dynamic patterns of learning and adjustment, and equilibrium steady-state distributions.