IDEAS home Printed from https://ideas.repec.org/a/eee/jeborg/v193y2022icp49-65.html
   My bibliography  Save this article

Game form recognition in preference elicitation, cognitive abilities, and cognitive load

Author

Listed:
  • Drichoutis, Andreas C.
  • Nayga, Rodolfo M.

Abstract

This study further examines the failure of game form recognition in preference elicitation (Cason and Plott, 2014) by making elicitation more cognitively demanding through a cognitive load manipulation. We hypothesized that if subjects misperceive one game for another game, then by depleting their cognitive resources, subjects would misconceive the more-cognitively demanding task for the less-cognitively demanding task at a higher rate. We find no evidence that subjects suffer from a first-price-auction game-form misconception, but once cognitive resources are depleted, subjects’ choices are better explained by random choice. More cognitively able subjects are more immune to deviations from sub-optimal play than lower cognitively able subjects. Moreover, we find no support for partial game form recognition. Our results are robust to the integration of risk preferences in the analysis.

Suggested Citation

  • Drichoutis, Andreas C. & Nayga, Rodolfo M., 2022. "Game form recognition in preference elicitation, cognitive abilities, and cognitive load," Journal of Economic Behavior & Organization, Elsevier, vol. 193(C), pages 49-65.
    • Handle: RePEc:eee:jeborg:v:193:y:2022:i:c:p:49-65
    DOI: 10.1016/j.jebo.2021.11.006
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0167268121004728
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jebo.2021.11.006?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Syngjoo Choi & Shachar Kariv & Wieland M?ller & Dan Silverman, 2014. "Who Is (More) Rational?," American Economic Review, American Economic Association, vol. 104(6), pages 1518-1550, June.
    2. Ji Yong Lee & Rodolfo M. Nayga & Cary Deck & Andreas C. Drichoutis, 2020. "Cognitive Ability and Bidding Behavior in Second Price Auctions: An Experimental Study," American Journal of Agricultural Economics, John Wiley & Sons, vol. 102(5), pages 1494-1510, October.
    3. Kenneth F Schulz & Douglas G Altman & David Moher & for the CONSORT Group, 2010. "CONSORT 2010 Statement: Updated Guidelines for Reporting Parallel Group Randomised Trials," PLOS Medicine, Public Library of Science, vol. 7(3), pages 1-7, March.
    4. Ben Greiner, 2015. "Subject pool recruitment procedures: organizing experiments with ORSEE," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(1), pages 114-125, July.
    5. Andreas C Drichoutis & Rodolfo M Nayga, 2020. "Economic Rationality under Cognitive Load," The Economic Journal, Royal Economic Society, vol. 130(632), pages 2382-2409.
    6. Rosato, Antonio & Tymula, Agnieszka A., 2019. "Loss aversion and competition in Vickrey auctions: Money ain't no good," Games and Economic Behavior, Elsevier, vol. 115(C), pages 188-208.
    7. Andreas C Drichoutis & Jayson L Lusk, 2014. "Judging Statistical Models of Individual Decision Making under Risk Using In- and Out-of-Sample Criteria," PLOS ONE, Public Library of Science, vol. 9(7), pages 1-13, July.
    8. Vuong, Quang H, 1989. "Likelihood Ratio Tests for Model Selection and Non-nested Hypotheses," Econometrica, Econometric Society, vol. 57(2), pages 307-333, March.
    9. Wilcox, Nathaniel T., 2011. "'Stochastically more risk averse:' A contextual theory of stochastic discrete choice under risk," Journal of Econometrics, Elsevier, vol. 162(1), pages 89-104, May.
    10. Kevin A. Clarke, 2003. "Nonparametric Model Discrimination in International Relations," Journal of Conflict Resolution, Peace Science Society (International), vol. 47(1), pages 72-93, February.
    11. Shengwu Li, 2017. "Obviously Strategy-Proof Mechanisms," American Economic Review, American Economic Association, vol. 107(11), pages 3257-3287, November.
    12. John D. Hey & Gianna Lotito & Anna Maffioletti, 2018. "The descriptive and predictive adequacy of theories of decision making under uncertainty/ambiguity," World Scientific Book Chapters, in: Experiments in Economics Decision Making and Markets, chapter 8, pages 189-219, World Scientific Publishing Co. Pte. Ltd..
    13. Deaton, Angus & Cartwright, Nancy, 2018. "Understanding and misunderstanding randomized controlled trials," Social Science & Medicine, Elsevier, vol. 210(C), pages 2-21.
    14. Horowitz, John K., 2006. "The Becker-DeGroot-Marschak mechanism is not necessarily incentive compatible, even for non-random goods," Economics Letters, Elsevier, vol. 93(1), pages 6-11, October.
    15. Charles A. Holt & Susan K. Laury, 2002. "Risk Aversion and Incentive Effects," American Economic Review, American Economic Association, vol. 92(5), pages 1644-1655, December.
    16. Bull, Charles & Courty, Pascal & Doyon, Maurice & Rondeau, Daniel, 2019. "Failure of the Becker–DeGroot–Marschak mechanism in inexperienced subjects: New tests of the game form misconception hypothesis," Journal of Economic Behavior & Organization, Elsevier, vol. 159(C), pages 235-253.
    17. Avinatan Hassidim & Déborah Marciano & Assaf Romm & Ran I. Shorrer, 2017. "The Mechanism Is Truthful, Why Aren't You?," American Economic Review, American Economic Association, vol. 107(5), pages 220-224, May.
    18. Guido W. Imbens & Jeffrey M. Wooldridge, 2009. "Recent Developments in the Econometrics of Program Evaluation," Journal of Economic Literature, American Economic Association, vol. 47(1), pages 5-86, March.
    19. Achilleas Vassilopoulos & Andreas C. Drichoutis & Rodolfo M. Nayga, Jr, 2018. "Loss Aversion, Expectations and Anchoring in the BDM Mechanism," Working Papers 2018-1, Agricultural University of Athens, Department Of Agricultural Economics.
    20. Nathaniel T. Wilcox, 2015. "Error and Generalization in Discrete Choice Under Risk," Working Papers 15-11, Chapman University, Economic Science Institute.
    21. Angus Deaton & Nancy Cartwright, 2016. "Understanding and Misunderstanding Randomized Controlled Trials," Working Papers august_25.pdf, Princeton University, Woodrow Wilson School of Public and International Affairs, Research Program in Development Studies..
    22. Andreas C. Drichoutis & Jayson L. Lusk, 2016. "What can multiple price lists really tell us about risk preferences?," Journal of Risk and Uncertainty, Springer, vol. 53(2), pages 89-106, December.
    23. Busemeyer, Jerome R. & Townsend, James T., 1992. "Fundamental derivations from decision field theory," Mathematical Social Sciences, Elsevier, vol. 23(3), pages 255-282, June.
    24. Furnham, Adrian & Boo, Hua Chu, 2011. "A literature review of the anchoring effect," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 40(1), pages 35-42, February.
    25. Mutz, Diana C. & Pemantle, Robin, 2015. "Standards for Experimental Research: Encouraging a Better Understanding of Experimental Methods," Journal of Experimental Political Science, Cambridge University Press, vol. 2(2), pages 192-215, January.
    26. Daniel J. Benjamin & Sebastian A. Brown & Jesse M. Shapiro, 2013. "Who Is ‘Behavioral’? Cognitive Ability And Anomalous Preferences," Journal of the European Economic Association, European Economic Association, vol. 11(6), pages 1231-1255, December.
    27. Karni, Edi & Safra, Zvi, 1987. ""Preference Reversal' and the Observability of Preferences by Experimental Methods," Econometrica, Econometric Society, vol. 55(3), pages 675-685, May.
    28. Brañas-Garza, Pablo & Smith, John, 2016. "Cognitive abilities and economic behavior," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 64(C), pages 1-4.
    29. Deck, Cary & Jahedi, Salar, 2015. "The effect of cognitive load on economic decision making: A survey and new experiments," European Economic Review, Elsevier, vol. 78(C), pages 97-119.
    30. A. Banerji & Neha Gupta, 2014. "Detection, Identification, and Estimation of Loss Aversion: Evidence from an Auction Experiment," American Economic Journal: Microeconomics, American Economic Association, vol. 6(1), pages 91-133, February.
    31. Andreas C. Drichoutis & Achilleas Vassilopoulos, 2021. "Intertemporal stability of survey‐based measures of risk and time preferences," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 30(3), pages 655-683, August.
    32. Bailey Norwood & Matthew C. Roberts & Jayson L. Lusk, 2004. "Ranking Crop Yield Models Using Out-of-Sample Likelihood Functions," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 86(4), pages 1032-1043.
    33. Ho, Daniel E. & Imai, Kosuke & King, Gary & Stuart, Elizabeth A., 2007. "Matching as Nonparametric Preprocessing for Reducing Model Dependence in Parametric Causal Inference," Political Analysis, Cambridge University Press, vol. 15(3), pages 199-236, July.
    34. Timothy N. Cason & Charles R. Plott, 2014. "Misconceptions and Game Form Recognition: Challenges to Theories of Revealed Preference and Framing," Journal of Political Economy, University of Chicago Press, vol. 122(6), pages 1235-1270.
    35. Gerhardt, Holger & Biele, Guido P. & Heekeren, Hauke R. & Uhlig, Harald, 2016. "Cognitive load increases risk aversion," SFB 649 Discussion Papers 2016-011, Humboldt University Berlin, Collaborative Research Center 649: Economic Risk.
    36. Kechagia, Varvara & Drichoutis, Andreas C., 2017. "The effect of olfactory sensory cues on willingness to pay and choice under risk," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 33-46.
    37. Andreas C Drichoutis & Rodolfo M Nayga, 0. "Economic Rationality under Cognitive Load," Economic Journal, Royal Economic Society, vol. 130(632), pages 2382-2409.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aaron Staples & Bridget K. Behe & Patricia Huddleston & Trey Malone, 2022. "What you see is what you get, and what you don't goes unsold: Choice overload and purchasing heuristics in a horticulture lab experiment," Agribusiness, John Wiley & Sons, Ltd., vol. 38(3), pages 620-635, July.
    2. Sommervoll, Dag Einar & Holden, Stein T., 2024. "Dominated choices in Risk and Time Elicitation," CLTS Working Papers 1/24, Norwegian University of Life Sciences, Centre for Land Tenure Studies.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Maurizio Canavari & Andreas C. Drichoutis & Jayson L. Lusk & Rodolfo M. Nayga, Jr., 2018. "How to run an experimental auction: A review of recent advances," Working Papers 2018-5, Agricultural University of Athens, Department Of Agricultural Economics.
    2. Andreas C Drichoutis & Rodolfo M Nayga, 2020. "Economic Rationality under Cognitive Load," The Economic Journal, Royal Economic Society, vol. 130(632), pages 2382-2409.
    3. Kechagia, Varvara & Drichoutis, Andreas C., 2017. "The effect of olfactory sensory cues on willingness to pay and choice under risk," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 70(C), pages 33-46.
    4. Andreas C. Drichoutis & Varvara Kechagia, 2016. "The effect of olfactory sensory cues on economic decision making," Working Papers 2016-4, Agricultural University of Athens, Department Of Agricultural Economics.
    5. Vassilopoulos, Achilleas & Drichoutis, Andreas C. & Nayga, Rodolfo, 2018. "Loss Aversion, Expectations and Anchoring in the BDM Mechanism," MPRA Paper 85635, University Library of Munich, Germany.
    6. Achilleas Vassilopoulos & Andreas C. Drichoutis & Rodolfo M. Nayga, 2024. "Reference dependence, expectations and anchoring in the Becker-DeGroot-Marschak mechanism," Theory and Decision, Springer, vol. 97(4), pages 637-683, December.
    7. Rosato, Antonio & Tymula, Agnieszka A., 2024. "A novel experimental test of truthful bidding in second-price auctions with real objects," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 111(C).
    8. Drichoutis, Andreas C. & Palma, Marco & Feldman, Paul, 2024. "Incentives and Payment Mechanisms in Preference Elicitation," MPRA Paper 120898, University Library of Munich, Germany.
    9. Andreas C. Drichoutis & Rodolfo M. Nayga, 2022. "On the stability of risk and time preferences amid the COVID-19 pandemic," Experimental Economics, Springer;Economic Science Association, vol. 25(3), pages 759-794, June.
    10. Anja Achtziger & Carlos Alós-Ferrer & Alexander Ritschel, 2020. "Cognitive load in economic decisions," ECON - Working Papers 354, Department of Economics - University of Zurich.
    11. Gerhardt, Holger & Schildberg-Hörisch, Hannah & Willrodt, Jana, 2017. "Does self-control depletion affect risk attitudes?," European Economic Review, Elsevier, vol. 100(C), pages 463-487.
    12. Segovia, Michelle & Palma, Marco & Lusk, Jayson L. & Drichoutis, Andreas, 2022. "Visual formats in risk preference elicitation: What catches the eye?," MPRA Paper 115572, University Library of Munich, Germany.
    13. Deck, Cary & Jahedi, Salar & Sheremeta, Roman, 2021. "On the consistency of cognitive load," European Economic Review, Elsevier, vol. 134(C).
    14. Maximilian Spath, 2023. "The qualitative accuracy of the Becker-DeGroot-Marshak method," Papers 2302.04055, arXiv.org.
    15. Sean Duffy & J. J. Naddeo & David Owens & John Smith, 2024. "Cognitive Load and Mixed Strategies: On Brains and Minimax," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 26(03), pages 1-34, September.
    16. Ola Andersson & Håkan J. Holm & Jean-Robert Tyran & Erik Wengström, 2020. "Robust inference in risk elicitation tasks," Journal of Risk and Uncertainty, Springer, vol. 61(3), pages 195-209, December.
    17. Holden , Stein T. & Tilahun , Mesfin, 2019. "The Devil is in the Details: Risk Preferences, Choice List Design, and Measurement Error," CLTS Working Papers 3/19, Norwegian University of Life Sciences, Centre for Land Tenure Studies, revised 16 Oct 2019.
    18. Duffy, Sean & Gussman, Steven & Smith, John, 2021. "Visual judgments of length in the economics laboratory: Are there brains in stochastic choice?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 93(C).
    19. Rosato, Antonio & Tymula, Agnieszka A., 2019. "Loss aversion and competition in Vickrey auctions: Money ain't no good," Games and Economic Behavior, Elsevier, vol. 115(C), pages 188-208.
    20. Thomas Giebe & Radosveta Ivanova-Stenzel & Martin G. Kocher & Simeon Schudy, 2024. "Cross-game learning and cognitive ability in auctions," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 80-108, March.

    More about this item

    Keywords

    Game form recognition; Game form misconception; Becker-DeGroot-Marschak mechanism; First price auction; Preference elicitation; Cognitive load; Cognitive resources; Raven test; Fluid intelligence;
    All these keywords.

    JEL classification:

    • C80 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jeborg:v:193:y:2022:i:c:p:49-65. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/jebo .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.