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On the absorbability of the Guessing Game Theory. A Theoretical and Experimental Analysis

Author

Listed:
  • Andrea Morone

    (University of Bari)

  • Serena Sandri

    (University of Dresden)

  • Tobias Uske

    (uske@econ.mpg.de)

Abstract

Theory absorption, a notion introduced by Morgenstern and Schwödiauer (1972) and further elaborated by Güth and Kliemt (2004), discusses the problem whether a theory can survive its own acceptance. Whereas this holds for strategic equilibria according to the assumptions on which they are based, the problem if theories are absorbable by at most boundedly rational decision makers is hardly discussed. Based on guessing game experiments we discuss the requirements of equilibrium theory absorption and test experimentally the effects of informing none, some or all players about how to derive equilibrium predictions.

Suggested Citation

  • Andrea Morone & Serena Sandri & Tobias Uske, 2007. "On the absorbability of the Guessing Game Theory. A Theoretical and Experimental Analysis," SERIES 0017, Dipartimento di Economia e Finanza - Università degli Studi di Bari "Aldo Moro", revised Apr 2007.
    • Handle: RePEc:bai:series:economia-series17
    as

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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Morone, Andrea & Fiore, Annamaria & Sandri, Serena, 2007. "On the absorbability of herd behaviour and informational cascades: an experimental analysis," Dresden Discussion Paper Series in Economics 15/07, Technische Universität Dresden, Faculty of Business and Economics, Department of Economics.
    2. Temerario, Tiziana, 2014. "Individual and Group Behaviour Toward Risk: A Short Survey," MPRA Paper 58079, University Library of Munich, Germany.
    3. Andrea Morone & Piergiuseppe Morone, 2016. "The Focal Point In The Traveller'S Dilemma: An Experimental Study," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 123-132, December.
    4. Morone, Andrea & Temerario, Tiziana, 2015. "Eliciting Preferences Over Risk: An Experiment," MPRA Paper 68519, University Library of Munich, Germany.
    5. Morone, A. & Morone, P. & Germani, A.R., 2014. "Individual and group behaviour in the traveler's dilemma: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 49(C), pages 1-7.
    6. Eugen Kovac & Martin Vojtek & Andreas Ortmann, 2008. "Comparing Guessing Games with homogeneous and heterogeneous players: Experimental results and a CH explanation," Economics Bulletin, AccessEcon, vol. 3(9), pages 1-9.
    7. Shu-Heng Chen & Ye-Rong Du & Lee-Xieng Yang, 2014. "Cognitive capacity and cognitive hierarchy: a study based on beauty contest experiments," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(1), pages 69-105, April.
    8. repec:ebl:ecbull:v:3:y:2008:i:9:p:1-9 is not listed on IDEAS
    9. Morone, Andrea & Sandri, Serena & Fiore, Annamaria, 2009. "On the absorbability of informational cascades in the laboratory," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 38(5), pages 728-738, October.

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    More about this item

    Keywords

    theory absorption; guessing game; p-beauty contest; individual behaviour; elimination of dominated strategies;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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