Finite mixture analysis of beauty-contest data using generalised beta distributions

Antoni Bosch-Domènech, José Garcia Montalvo (), Rosemarie Nagel and Albert Satorra
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José Garcia Montalvo: https://www.upf.edu/web/econ/faculty/-/asset_publisher/6aWmmXf28uXT/persona/id/3418887

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: This paper introduces a mixture model based on the beta distribution, without preestablished means and variances, to analyze a large set of Beauty-Contest data obtained from diverse groups of experiments (Bosch-Domenech et al. 2002). This model gives a better t of the experimental data, and more precision to the hypothesis that a large proportion of individuals follow a common pattern of reasoning, described as iterated best reply (degenerate), than mixture models based on the normal distribution. The analysis shows that the means of the distributions across the groups of experiments are pretty stable, while the proportions of choices at di erent levels of reasoning vary across groups.

Keywords: Keywords: Beauty-Contest experiments; decision theory; reasoning hierarchy; finite mixture distribution; beta distribution; EM algorithm. (search for similar items in EconPapers)
JEL-codes: C24 C44 C91 (search for similar items in EconPapers)
Date: 2004-01, Revised 2010-05
New Economics Papers: this item is included in nep-ecm, nep-evo and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)

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Related works:
Journal Article: A finite mixture analysis of beauty-contest data using generalized beta distributions (2010)
Working Paper: Finite Mixture Analysis of Beauty-Contest Data Using Generalised Beta Distributions (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:737

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