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Cognition And Behavior In Two-Person Guessing Games: An Experimental Study

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  • Miguel Costa-Gomes
  • Vincent P. Crawford

Abstract

This paper reports experiments that elicit subjects' initial responses to 16 dominance-solvable two-person guessing games. The structure is publicly announced except for varying payoff parameters, to which subjects are given free access, game by game, through an interface that records their information searches. Varying the parameters allows strong separation of the behavior implied by leading decision rules and makes monitoring search a powerful tool for studying cognition. Many subjects' decisions and searches show clearly that they understand the games and seek to maximize their payoffs, but have boundedly rational models of others' decisions, which lead to systematic deviations from equilibrium.
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Suggested Citation

  • Miguel Costa-Gomes & Vincent P. Crawford, 2004. "Cognition And Behavior In Two-Person Guessing Games: An Experimental Study," Levine's Bibliography 122247000000000143, UCLA Department of Economics.
    • Handle: RePEc:cla:levrem:122247000000000143
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    File URL: http://econ.ucsd.edu/~vcrawfor/6Apr04GuessingMain.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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