Economics at your fingertips  

A Game Theoretic Approach to Model Financal Markets: Guessing Game

U. Baris Urhan and Zafer Akin ()

Istanbul Stock Exchange Review, 2011, vol. 12, issue 47, 43-74

Abstract: How deep our reasoning and strategic thinking is and how strategic we think are crucial in making financial investment decisions because we need to guess how other people will behave. This paper studies Guessing Game (Beauty contest game) that helps us understand how people make decisions in environments where depth of reasoning plays a key role. We mainly summarize the findings of experimental studies focusing on this game and then link these findings to financial markets, especially to stock market players’ behavior. We also offer some extensions that may further contribute to produce better and more realistic models of financial markets.

Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in Istanbul Stock Exchange Review from Research and Business Development Department, Borsa Istanbul Contact information at EDIRC.
Bibliographic data for series maintained by Ahmet Palu ().

Page updated 2021-11-23
Handle: RePEc:bor:iserev:v:12:y:2011:i:47:p:43-74