Recommended play and correlated equilibria: an experimental study
AbstractThis study reports a laboratory experiment wherein subjects play a hawk-dove game. We try to implement a correlated equilibrium with payoffs outside the convex hull of Nash equilibrium payoffs by privately recommending play. We find that subjects are reluctant to follow certain recommendations. We are able to implement this correlated equilibrium, however, when subjects play against robots that always follow recommendations, including in a control treatment in which human subjects receive the robot "earnings." This indicates that the lack of mutual knowledge of conjectures, rather than social preferences, explains subjects' failure to play the suggested correlated equilibrium when facing other human players.
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Bibliographic InfoArticle provided by Springer in its journal Economic Theory.
Volume (Year): 33 (2007)
Issue (Month): 1 (October)
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Web page: http://link.springer.de/link/service/journals/00199/index.htm
Other versions of this item:
- Cason, Timothy N. & Sharma, Tridib, 2006. "Recommended Play and Correlated Equilibria: An Experimental Study," Purdue University Economics Working Papers 1191, Purdue University, Department of Economics.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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