Abstract
We test the portability of level-0 assumptions in level-k theory in an experimental
investigation of behavior in Coordination, Discoordination, and Hide and Seek
games with common, non-neutral frames. Assuming that level-0 behavior depends only on the frame, we derive hypotheses that are independent of prior assumptions abou tsalience. Those hypotheses are not confirmed. Our findings contrast with previous research which has fitted parameterized level-k models to Hide and Seek data. We show that, as a criterion of successful explanation, the existence of a plausible model that replicates the main patterns in these data has a high probability of false positives.
investigation of behavior in Coordination, Discoordination, and Hide and Seek
games with common, non-neutral frames. Assuming that level-0 behavior depends only on the frame, we derive hypotheses that are independent of prior assumptions abou tsalience. Those hypotheses are not confirmed. Our findings contrast with previous research which has fitted parameterized level-k models to Hide and Seek data. We show that, as a criterion of successful explanation, the existence of a plausible model that replicates the main patterns in these data has a high probability of false positives.
Original language | English |
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Pages (from-to) | 1133–1151 |
Number of pages | 18 |
Journal | Econometrica |
Volume | 82 |
Issue number | 3 |
DOIs | |
Publication status | Published - May 2014 |
Keywords
- Level-k theory
- Hide and Seek
- coordination
- discoordination
Profiles
-
Robert Sugden
- School of Economics - Professor of Economics
- Centre for Behavioural and Experimental Social Science - Member
- Centre for Competition Policy - Member
- Behavioural Economics - Member
- Economic Theory - Member
Person: Research Group Member, Research Centre Member, Academic, Teaching & Research