Predicting human behaviour Seminar

Over the last sixty years it has been realised that Nash's theory makes poor and sometimes totally wrong predictions of human behavior. My plan is to talk about an emerging new theory, called cooperative equilibrium theory, based on the principle that humans do not act a priori as single agents, but first they forecast how "the game" would be played if they formed coalitions and then they act according to their best forecast. I'll show that the predictions of this new theory match the experimental data surprisingly well.