EconPapers    
Economics at your fingertips  
 

Speculation Rather than Enterprise? Keyness Beauty Contest Revisited in Theory and Experiment

Kene Boun My (), Camille Cornand and Rodolphe Dos Santos Ferreira ()

Post-Print from HAL

Abstract: In Keynes' beauty contest, agents make evaluations reflecting both an expected fundamental value and the conventional value expected to be set by the market. They thus respond to fundamental and coordination motives, respectively, the prevalence of either being set exogenously. Our contribution is twofold. First, we propose a valuation game in which agents strategically choose how to weight each motive. This game emphasises public information leads agents to favour the coordination motive. Second, we test the game through a laboratory experiment. Subjects tend to conform to theoretical predictions, except when fundamental uncertainty is low relative to strategic uncertainty.

Keywords: dispersed information; public information; beauty contest; coordination; experiment (search for similar items in EconPapers)
Date: 2017
Note: View the original document on HAL open archive server: https://hal.univ-lorraine.fr/hal-02510843
References: Add references at CitEc
Citations: Track citations by RSS feed

Published in SSRN : Social Science Research Network, Elsevier, 2017, ⟨10.2139/ssrn.2929999⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Speculation rather than enterprise? Keynes' beauty contest revisited in theory and experiment (2017)
Working Paper: Speculation rather than enterprise? Keynes' beauty contest revisited in theory and experiment (2017)
Working Paper: Speculation rather than enterprise? Keynes’ beauty contest revisited in theory and experiment (2017) Downloads
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: https://EconPapers.repec.org/RePEc:hal:journl:hal-02510843

DOI: 10.2139/ssrn.2929999

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().

 
Page updated 2021-06-19
Handle: RePEc:hal:journl:hal-02510843