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Out of your mind: Eliciting individual reasoning in one shot games

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  • Burchardi, Konrad B.
  • Penczynski, Stefan P.

Abstract

We experimentally investigate the fundamental element of the level-k model of reasoning, the level-0 actions and beliefs. We use data from a novel experimental design that allows us to obtain incentivised written accounts of individuals' reasoning. In particular, these accounts allow to infer level-0 beliefs. Level-0 beliefs are not significantly different from 50, and almost 60% of higher level players start their reasoning from a level-0 belief of exactly 50. We also estimate that around one third of the participants play non-strategically. The non-strategic level-0 actions are not uniformly distributed.

Suggested Citation

  • Burchardi, Konrad B. & Penczynski, Stefan P., 2014. "Out of your mind: Eliciting individual reasoning in one shot games," Games and Economic Behavior, Elsevier, vol. 84(C), pages 39-57.
    • Handle: RePEc:eee:gamebe:v:84:y:2014:i:c:p:39-57
    DOI: 10.1016/j.geb.2013.12.005
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    More about this item

    Keywords

    Individual reasoning; One shot games; Level-k model;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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