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Learning in and about Games

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  • Anke Gerber

Abstract

We study finitely repeated 2 / 2 normal form games, where players have incomplete information about their opponents� payoffs. In a laboratory experiment we investigate whether players (a) learn the game they are playing, (b) learn to predict the behavior of their opponent, and (c) learn to play according to a Nash equilibrium of the repeated game. Our results show that the success in learning the opponent�s type depends on the characteristics of the true game. The learning success is much higher for games with pure strategy Nash equilibria than for games with a unique mixed strategy Nash equilibrium, and it is higher for games with symmetric pure strategy Nash equilibria than for games with asymmetric equilibria. Moreover, subjects learn to predict the opponents� behavior very well. However, they rarely play according to a Nash equilibrium and we observe no correlation between equilibrium play and learning about the game.

Suggested Citation

  • Anke Gerber, "undated". "Learning in and about Games," IEW - Working Papers 234, Institute for Empirical Research in Economics - University of Zurich.
    • Handle: RePEc:zur:iewwpx:234
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    File URL: https://www.zora.uzh.ch/id/eprint/52215/1/iewwp234.pdf
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    References listed on IDEAS

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    7. Oechssler, Jorg & Schipper, Burkhard, 2003. "Can you guess the game you are playing?," Games and Economic Behavior, Elsevier, vol. 43(1), pages 137-152, April.
    8. Dean Foster & H Peyton Young, 1999. "On the Impossibility of Predicting the Behavior of Rational Agents," Economics Working Paper Archive 423, The Johns Hopkins University,Department of Economics, revised Jun 2001.
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    Cited by:

    1. David Danz & Dietmar Fehr & Dorothea Kübler, 2012. "Information and beliefs in a repeated normal-form game," Experimental Economics, Springer;Economic Science Association, vol. 15(4), pages 622-640, December.
    2. Fehr, Ernst & Fischbacher, Urs & Kosfeld, Michael, 2005. "Neuroeconomic Foundations of Trust and Social Preferences," IZA Discussion Papers 1641, Institute of Labor Economics (IZA).
    3. Hoffmann, Eric, 2016. "On the learning and stability of mixed strategy Nash equilibria in games of strategic substitutes," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 349-362.
    4. Tania Singer & Ernst Fehr, 2005. "The Neuroeconomics of Mind Reading and Empathy," American Economic Review, American Economic Association, vol. 95(2), pages 340-345, May.
    5. Berninghaus, Siegfried K. & Haller, Sven & Krüger, Tyll & Neumann, Thomas & Schosser, Stephan & Vogt, Bodo, 2013. "Risk attitude, beliefs, and information in a Corruption Game – An experimental analysis," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 46-60.
    6. Armin Falk & Ernst Fehr & Christian Zehnder, "undated". "The Behavioral Effects of Minimum Wages," IEW - Working Papers 247, Institute for Empirical Research in Economics - University of Zurich.
    7. Andreas Nicklisch, 2011. "Learning strategic environments: an experimental study of strategy formation and transfer," Theory and Decision, Springer, vol. 71(4), pages 539-558, October.
    8. Thomas Neumann & Bodo Vogt, 2009. "Do Players’ Beliefs or Risk Attitudes Determine The Equilibrium Selections in 2x2 Coordination Games?," FEMM Working Papers 09024, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    9. repec:hum:wpaper:sfb649dp2008-026 is not listed on IDEAS

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    More about this item

    Keywords

    Learning; game theory; incomplete information; experiments;
    All these keywords.

    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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