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Eliciting beliefs in beauty contest experiments

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  • Lahav, Yaron

Abstract

Using elicited beliefs in several treatments of the beauty contest experiment, we show that (a) belief elicitation does not affect decisions, (b) beliefs and choices are inconsistent, and (c) players are more sophisticated compared to previous work.

Suggested Citation

  • Lahav, Yaron, 2015. "Eliciting beliefs in beauty contest experiments," Economics Letters, Elsevier, vol. 137(C), pages 45-49.
    • Handle: RePEc:eee:ecolet:v:137:y:2015:i:c:p:45-49
    DOI: 10.1016/j.econlet.2015.08.024
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    References listed on IDEAS

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    1. Martin G. Kocher & Matthias Sutter, 2005. "The Decision Maker Matters: Individual Versus Group Behaviour in Experimental Beauty-Contest Games," Economic Journal, Royal Economic Society, vol. 115(500), pages 200-223, January.
    2. Sutter, Matthias, 2005. "Are four heads better than two? An experimental beauty-contest game with teams of different size," Economics Letters, Elsevier, vol. 88(1), pages 41-46, July.
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    5. Sutter, Matthias & Czermak, Simon & Feri, Francesco, 2013. "Strategic sophistication of individuals and teams. Experimental evidence," European Economic Review, Elsevier, vol. 64(C), pages 395-410.
    6. Grosskopf, Brit & Nagel, Rosemarie, 2008. "The two-person beauty contest," Games and Economic Behavior, Elsevier, vol. 62(1), pages 93-99, January.
    7. Guth, Werner & Kocher, Martin & Sutter, Matthias, 2002. "Experimental 'beauty contests' with homogeneous and heterogeneous players and with interior and boundary equilibria," Economics Letters, Elsevier, vol. 74(2), pages 219-228, January.
    8. Duffy, John & Nagel, Rosemarie, 1997. "On the Robustness of Behaviour in Experimental "Beauty Contest" Games," Economic Journal, Royal Economic Society, vol. 107(445), pages 1684-1700, November.
    9. Colin F. Camerer & Teck-Hua Ho & Juin-Kuan Chong, 2004. "A Cognitive Hierarchy Model of Games," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 119(3), pages 861-898.
    10. Reinhard Selten, 1998. "Axiomatic Characterization of the Quadratic Scoring Rule," Experimental Economics, Springer;Economic Science Association, vol. 1(1), pages 43-61, June.
    11. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-1326, December.
    12. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
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    Cited by:

    1. Ciril Bosch-Rosa & Thomas Meissner, 2020. "The one player guessing game: a diagnosis on the relationship between equilibrium play, beliefs, and best responses," Experimental Economics, Springer;Economic Science Association, vol. 23(4), pages 1129-1147, December.
    2. Lee, Natalie, 2023. "Feigning ignorance for long-term gains," Games and Economic Behavior, Elsevier, vol. 138(C), pages 42-71.
    3. Qin, Botao, 2019. "Gender and the beauty contest game," MPRA Paper 99604, University Library of Munich, Germany.

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    More about this item

    Keywords

    Beauty contest; Belief elicitation; Higher order beliefs; Level of sophistication; Reasoning; Strategic play;
    All these keywords.

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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