Lucky Numbers in Simple Games

Irenaeus Wolff

No 107, TWI Research Paper Series from Thurgauer Wirtschaftsinstitut, Universität Konstanz

Abstract: Simple game structures such as coordination, discoordination, hide-and seek, and Colonel-Blotto games have been used to model a wide range of economically relevant situations. Yet, Nash-equilibrium, and alternative theories that have been proposed in the literature, notoriously fail to explain observed behaviorinthesegames. Thispaperproposesabounded-rationalityapproachinwhich players lexicographically employ team reasoning, choose ‘lucky numbers’ (the choice they would pick in a lottery), and randomise uniformly. This three-step procedure is able to organise the data across many diferent frames for coordination, discoordination, and hide-and-seek games. Moreover, it predicts three general regularities that bear out on the existing data and additional data from a Colonel-Blotto game and a Rock-Paper-Scissors-type of game.

Keywords: Bounded Rationality; Level-k; Salience; Heuristic; Hide & Seek; Discoordination; Rock-Paper-Scissors; Colonel Blotto; Representativeness (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cbe and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Lucky Numbers in Simple Games (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:twi:respas:0107

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