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Monty Hall's Three Doors for Dummies

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Author Info
Andrea Morone () (University of Bari.)
Annamaria Fiore () (University of Bari.)

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Abstract

Monty Hall's three doors problem is a well-known "anomaly" in economics. It appears to be an example of a systematic violation of the assumption of subjects' rationality. Many papers have studied the Monty Hall anomaly under different perspectives (i.e. computerizing, learning, grouping, talking, and even teaching how to play it), but the anomaly still survives. The most common explanation for this is that subjects are unable to carry out correctly the Bayesian updating necessary. Our approach is different from all previous attempts to explain and correct the Monty Hall anomaly, inasmuch we developed a more radical "debiasing test". Even if the game remains identical in terms of probabilities and subjects task, we eliminate the necessity for any Bayesian updating, as our new framework does not require subjects to make any probability calculations. Consequently, having eliminated the cause, also the effect should have disappeared. In order to make our results robust, we also run an intermediate treatment. Even though we observe an evident monotonic increase in the switching percentage across the three treatments, as we expected (from 41.5% in the treatment that replicates the standard design, to 45.5% for the intermediate treatment, up to 58% in the new framework), this percentage remains still too low, even though no Bayesian updating is involved. These results drive us to conclude that this anomaly, even if attenuated by design conditions, is not a weak effect, but rather a systematic behavioural regularity. It could be attributed to some psychological underpinnings, such as the status quo bias. We comment on these, and alternative explanations, in our conclusions.

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Publisher Info
Paper provided by Dipartimento di Scienze Economiche - Università di Bari in its series series with number 0012.

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Length: 15
Date of creation: Jul 2006
Date of revision: Jul 2006
Handle: RePEc:bai:series:wp0012

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Related research
Keywords: Learning; Anomaly; Individual decision making.;

Find related papers by 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

This paper has been announced in the following NEP Reports:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Slembeck, Tilman & Tyran, Jean-Robert, 2004. "Do institutions promote rationality?: An experimental study of the three-door anomaly," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 337-350, July. [Downloadable!] (restricted)
    Other versions:
  2. Friedman, Daniel, 1998. "Monty Hall's Three Doors: Construction and Deconstruction of a Choice Anomaly," American Economic Review, American Economic Association, vol. 88(4), pages 933-46, September. [Downloadable!] (restricted)
  3. Kahneman, Daniel & Knetsch, Jack L & Thaler, Richard H, 1991. "The Endowment Effect, Loss Aversion, and Status Quo Bias: Anomalies," Journal of Economic Perspectives, American Economic Association, vol. 5(1), pages 193-206, Winter. [Downloadable!] (restricted)
  4. Selten, Reinhard & Joachim Buchta, 1994. "Experimental Sealed Bid First Price Auctions with Directly Observed Bid Functions," Discussion Paper Serie B 270, University of Bonn, Germany.
  5. Erev, Ido & Roth, Alvin E, 1998. "Predicting How People Play Games: Reinforcement Learning in Experimental Games with Unique, Mixed Strategy Equilibria," American Economic Review, American Economic Association, vol. 88(4), pages 848-81, September. [Downloadable!] (restricted)
  6. Ignacio Palacios-Huerta, 2003. "Learning to Open Monty Hall's Doors," Experimental Economics, Springer, vol. 6(3), pages 235-251, November. [Downloadable!] (restricted)
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  7. Page, Scott E., 1998. "Let's make a deal," Economics Letters, Elsevier, vol. 61(2), pages 175-180, November. [Downloadable!] (restricted)
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