2010/18 | LEM Working Paper Series | |
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Feature-based Choice and Similarity in Normal-form Games: An Experimental Study |
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Giovanna Devetag, Sibilla Di Guida |
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Keywords | ||
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normal form games, one-shot games, response times, dominance, similarity, categorization, focal points, individual
behavior
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JEL Classifications | ||
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C72, C91, C92
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Abstract | ||
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In this paper, we test the effect of descriptive "features" on initial
strategic behavior in normal form games, where the term "descriptive"
indicates all those features which can be modified without altering
the (Nash) equilibrium structure of a game. Our experimental subjects
behaved according to some simple heuristics based on descriptive
features, and we observed that these heuristics were stable even
across strategically different games. These findings indicate the need
to incorporate descriptive features into models describing strategic
sophistication in normal form games. Analysis of choice patterns and
individual behavior indicates that non-equilibrium choices may derive
from incorrect and simplified mental representations of the game
structure, rather than from beliefs in other players'
irrationality. We suggest how level-k and cognitive hierarchy models
might be extended to account for heuristic-based and feature-based
behavior.
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