Strategic sophistication of individuals and teams in experimental normal-form games
Matthias Sutter,
Simon Czermak () and
Francesco Feri
Working Papers from Faculty of Economics and Statistics, Universität Innsbruck
Abstract:
We present an experiment on strategic thinking and behavior of individuals and teams in one-shot normal-form games. Besides making choices, decision makers have to state their first- and second-order beliefs. We find that teams play the Nash strategy significantly more often, and their choices are more often consistent by being a best reply to first order beliefs. We identify the complexity of a game and the payoffs in equilibrium as determining the likelihood of consistent behavior according to textbook rationality. Using a mixture model, the estimated probability to play strategically is 62% for teams, but only 40% for individuals.
Keywords: Strategic sophistication; beliefs; experiment; team decision making; individual decision making (search for similar items in EconPapers)
JEL-codes: C72 C91 C92 (search for similar items in EconPapers)
Pages: 62
Date: 2010-01
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Citations: View citations in EconPapers (8)
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https://www2.uibk.ac.at/downloads/c4041030/wpaper/2010-02.pdf (application/pdf)
Related works:
Working Paper: Strategic Sophistication of Individuals and Teams in Experimental Normal-Form Games (2010) 
Working Paper: Strategic Sophistication of Individuals and Teams in Experimental Normal-Form Games (2010) 
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Persistent link: https://EconPapers.repec.org/RePEc:inn:wpaper:2010-02
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