Strategic reasoning in p-beauty contests

نویسنده

  • Yves Breitmoser
چکیده

This paper analyzes strategic choice in p-beauty contests. First, I show that it is not generally a best reply to guess the expected target value, even in games with n > 2 players, and that iterated best response sequences strictly applied do not induce a choice sequence approximating pk · 0.5. Second, I argue that the beliefs and actions of players typically considered to be level 2–4 are captured more accurately using high-level concepts such as quantal response equilibrium and noisy introspection. Third, I analyze this hypothesis econometrically. The results confirm it. In five out of six data sets, the subject pool is represented most accurately as a mixture of quantal response equilibrium types and noisy introspection types. JEL–Codes: C44, C72

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Collusion in Beauty Contests

During the recent sales of UMTS licenses in Europe some countries used auctions while others resorted to so-called Beauty Contests. There seems to be a wide consensus among economists that in these and other contexts like privatization an auction is the better selling mechanism. However, why exactly an auction should be preferred is unclear. Here we present an argument why beauty contests or ne...

متن کامل

The Beauty Contest and Short-Term Trading∗

Short-termism need not breed informational price inefficiency even when generating Beauty Contests. We demonstrate this claim in a two-period market with persistent liquidity trading and risk-averse, privately informed, short-term investors and find that prices reflect average expectations about fundamentals and liquidity trading. Informed investors engage in “retrospective” learning to reasses...

متن کامل

Autism does not limit strategic thinking in the "beauty contest" game.

A popular hypothesis in developmental psychology is that individuals with autism spectrum disorder (ASD) have a specific impairment or developmental delay in their ability to reason about other people's mental processes, especially when this reasoning process is of a higher-order, recursive, or nested variety. One type of interpersonal interaction that involves this sort of complex reasoning ab...

متن کامل

www.econstor.eu Experimental ’Beauty Contests’ with Homogeneous and Heterogeneous Players and with Interior and Boundary Equilibria

We study behavior in experimental beauty contests with, first, boundary and interior equilibria, and, second, homogeneous and heterogenous types of players. We find quicker and better convergence to the game-theoretic equilibrium with interior equilibria and homogeneous players. JEL-classification code: C72, C91

متن کامل

Experimental ’Beauty Contests’ with Homogeneous and Heterogeneous Players and with Interior and Boundary Equilibria

We study behavior in experimental beauty contests with, first, boundary and interior equilibria, and, second, homogeneous and heterogenous types of players. We find quicker and better convergence to the game-theoretic equilibrium with interior equilibria and homogeneous players. JEL-classification code: C72, C91

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:
  • Games and Economic Behavior

دوره 75  شماره 

صفحات  -

تاریخ انتشار 2012