Self-Selection Into Strategic Environments
Guillaume Hollard and
Fabien Perez ()
Additional contact information
Fabien Perez: CREST, INSEE
No 2020-10, Working Papers from Center for Research in Economics and Statistics
Self-selection is common in naturally-occurring situations, including those where players can choose to engage in strategic interactions, but is absent from most lab experiments. A better understanding of the effect of self-selection will therefore enhance the external validity of behavioral game theory. We here gauge the impact of self-selection on strategic interactions in one-shot games by adding an explicit self-selection stage to a lab experiment so as to address our two main questions: (1) What are the determinants of self-selection? and (2) What are the consequences of self-selection on the composition of the pool of subjects and, in turn, on the strategies played? We consider three potential drivers of self-selection: risk aversion, past strategies and a new (in this context) measure of confidence. One side-product of the present study is thus the first assessment of the relevance of confidence judgments in experimental games. We find that risk-aversion and confidence explain a large part of the individual heterogeneity in self-selection. We also find a substantial change in the strategies used under self-selection (as compared to no self-selection), with the main effect coming from the filtering out of ”poor” strategies (i.e. dominated strategies or strategies leading to low payoffs). As a result, we can predict that self-selected subjects in the field act morein accordance with Nash-equilibrium predictions, although there are still large deviations from equilibrium.
Keywords: Experiments; Self-selection; non-cooperative games; External Validity. (search for similar items in EconPapers)
JEL-codes: C72 C9 (search for similar items in EconPapers)
Pages: 50 pages
New Economics Papers: this item is included in nep-cbe, nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://crest.science/RePEc/wpstorage/2020-10.pdf CREST working paper version (application/pdf)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:crs:wpaper:2020-10
Access Statistics for this paper
More papers in Working Papers from Center for Research in Economics and Statistics Contact information at EDIRC.
Bibliographic data for series maintained by Secretariat General ().