Three very simple games and what it takes to solve them

0339591 - NHU-C 2010 RIV NL eng J - Journal Article
Rydval, O. - Ortmann, A. - Ostatnický, Michal
Three very simple games and what it takes to solve them.
Journal of Economic Behavior & Organization. Roč. 72, č. 1 (2009), s. 589-601. ISSN 0167-2681. E-ISSN 1879-1751
R&D Projects: GA MŠMT LC542
Institutional research plan: CEZ:MSM0021620846
Keywords : guessing games * cognition * bounded rationality
Subject RIV: AH - Economics
Impact factor: 1.081, year: 2009

We study experimentally the nature of dominance violations in three minimalist dominance-solvable guessing games. Only about a third of our subjects report reasoning consistent with dominance; they all make dominant choices and almost all expect others to do so. Nearly two-third of our subjects report reasoning inconsistent with dominance, yet a quarter of them actually make dominant choices and half of those expect others to do so. Reasoning errors are more likely for subjects with lower working memory, intrinsic motivation and premeditation attitude. Dominance-incompatible reasoning arises mainly from subjects misrepresenting the strategic nature (payoff structure) of the guessing games.
Permanent Link: http://hdl.handle.net/11104/0183071