Behavioral Game Theory: Experiments in Strategic Interaction, by Colin Camerer

Game theory, with feelings. This book claims to have lots of experiments to show where game theory succeeds and where it fails. Of interest are the areas mentioned in this paragraph of the abstract:

Behavioral game theory has three ingredients that come clearly into focus in this book: mathematical theories of how moral obligation and vengeance affect the way people bargain and trust each other; a theory of how limits in the brain constrain the number of steps of "I think he thinks . . ." reasoning people naturally do; and a theory of how people learn from experience to make better strategic decisions. Strategic interactions that can be explained by behavioral game theory include bargaining, games of bluffing as in sports and poker, strikes, how conventions help coordinate a joint activity, price competition and patent races, and building up reputations for trustworthiness or ruthlessness in business or life.

Looks like a good resource.

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