LEARNING IN GAMES

This essay discusses some recent work on 'learning in games'. We explo re nonequilibrium theories in which equilibrium emerges as the long-ru n outcome of a dynamic process of adjustment or learning. We focus on individual level models, and more specifically on variants of 'fictiti ous play' in two-player games. We discuss both the theoretical propert ies of the models and their relationship to regularities observed in g ame theory experiments. (C) 1998 Elsevier Science B.V. All rights rese rved.