The predominant role of signal precision in experimental beauty contests

Camille Cornand and Romain Baeriswyl ()
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Romain Baeriswyl: Swiss National Bank, Boersenstrasse 15, 8022 Zurich, Switzerland;

No 1441, Working Papers from Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon

Abstract: The weight assigned to public information in Keynesian beauty contest depends on the signal precision and on the degree of strategic complementarities. This experimental study shows that the response of subjects to changes in the signal precision and in the degree of strategic complementarities is qualitatively consistent with theoretical predictions, though quantitatively weaker. The weaker subjects’ response to changes in the signal precision, however, mainly drives the weight observed in the experiment, making strategic complementarities and overreaction an issue of second order.

Keywords: heterogeneous information; beauty contest; experiment; public information (search for similar items in EconPapers)
JEL-codes: C92 D82 D84 E58 (search for similar items in EconPapers)
Date: 2014
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-mac
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ftp://ftp.gate.cnrs.fr/RePEc/2014/1441.pdf (application/pdf)

Related works:
Journal Article: The Predominant Role of Signal Precision in Experimental Beauty Contests (2016)
Working Paper: The predominant role of signal precision in experimental beauty contest (2016)
Working Paper: The predominant role of signals’ precision in experimental beauty contest (2016)
Working Paper: The predominant role of signals’ precision in experimental beauty contest (2016)
Working Paper: The predominant role of signal precision in experimental beauty contest (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:gat:wpaper:1441

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