How portable is level-0 behavior? A test of level-k theory in game with non-neutral frames

Shaun Hargreaves-Heap, David Rojo Arjona, Robert Sugden

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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.
Original languageEnglish
Pages (from-to)1133–1151
Number of pages18
JournalEconometrica
Volume82
Issue number3
DOIs
Publication statusPublished - May 2014

Keywords

  • Level-k theory
  • Hide and Seek
  • coordination
  • discoordination

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