Experimental tests of choice predictions in one-shot games show only little support for Nash equilibrium (NE). Poisson Cognitive Hierarchy (PCH) and level-k (LK) are behavioral models of the thinkingsteps variety where subjects differ in the number of levels of iterated reasoning they perform. Camerer et al. (2004) claim that substituting
the Poisson parameter = 1:5 yields a parameter-free PCH model (pfPCH) which predicts experimental data considerably better than NE. We design a new multi-person game, the Minimizer Game, as a testbed to compare initial choice predictions of NE, pfPCH and LK.
Data obtained from two large-scale online experiments strongly reject NE and LK, but are well in line with the point-prediction of pfPCH.
| Identifer | oai:union.ndltd.org:VIENNA/oai:epub.wu-wien.ac.at:5155 |
| Date | January 2016 |
| Creators | Berger, Ulrich, De Silva, Hannelore, Fellner-Röhling, Gerlinde |
| Publisher | Elsevier |
| Source Sets | Wirtschaftsuniversität Wien |
| Language | English |
| Detected Language | English |
| Type | Article, PeerReviewed |
| Format | application/pdf |
| Rights | Creative Commons: Attribution-NonCommercial-NoDerivatives 4.0 International (CC BY-NC-ND 4.0) |
| Relation | https://doi.org/10.1016/j.jebo.2016.08.004, http://www.elsevier.com, http://epub.wu.ac.at/5155/ |
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