How the model works Each time period contains a number of matches. In each match, one pair of agents is drawn at random from the population to bargain with each other for a share of unspecified goods.
Agents remember their previous games and form according expectations about their opponent's demands.
But with some relatively small probability, e , she selects her demand randomly. If several demands maximize expected payoff, they are chosen with equal probability. With probability e the agent does not optimize, but chooses one of the three demands, H, M, or L, at random. These rules for matching, belief formation, and behavior define a particular social dynamic as a function of the population size N, memory length m, and error rate e. For more detailed information, see the paper .