Strength of dominance and depths of reasoning--An experimental study

Ylva Søvik

Journal of Economic Behavior & Organization, 2009, vol. 70, issue 1-2, 196-205

Abstract: Iterated elimination of strictly dominated strategies has a stronger epistemic foundation than iterated elimination of weakly dominated strategies. In this paper I investigate experimentally whether this translates into actual differences in behavior. In particular, I analyze whether it affects subjects' depth of reasoning. This is done within two slightly different versions of a betting game under asymmetric information, in which very similar steps of reasoning can be applied to reach no-betting, or non-speculative, behavior, but of which only one can be solved by iterated elimination of strictly dominated strategies. The results indicate that strength of dominance matters indeed.

Keywords: Experimental; economics; Depths; of; reasoning; Iterated; strict; dominance; Iterated; weak; dominance (search for similar items in EconPapers)
Date: 2009
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:70:y:2009:i:1-2:p:196-205

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