Naive Bayesian Learning and Adjustment to Equilibrium in Signaling Games

نویسندگان

  • Jordi Brandts
  • Charles A. Holt
چکیده

This paper uses laboratory and simulation techniques to examine behavior in two signaling games with different payoff structures. Each game has two sequential equilibria in pure strategies, one of which is ruled out by standard “refinements.” The behavior of human subjects approaches the more refined equilibrium in one of the games, but it approaches the less refined equilibrium in the other game. This difference in subjects’ decisions is predicted by a simple Bayesian learning process. The period-by-period pattern of adjustment is tracked by computer simulations that incorporate Bayesian learning, logistic decision errors, and some strategic anticipation. Journal of Economic Literature classification: C72, C92 keywords: experiments, game theory, learning, simulations

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تاریخ انتشار 1995