Finite Mixture Analysis of Beauty-Contest Data Using Generalised Beta Distributions
AbstractThis paper introduces a mixture model based on the beta distribution, without preestablished means and variances, to analyze a large set of Beauty-Contest data obtained from diverse groups of experiments (Bosch-Dom`enech et al. 2002). This model gives a better ﬁt of the experimental data, and more precision to the hypothesis that a large proportion of individuals follow a common pattern of reasoning, described as iterated best reply (degenerate), than mixture models based on the normal distribution. The analysis shows that the means of the distributions across the groups of experiments are pretty stable, while the proportions of choices at diﬀerent levels of reasoning vary across groups.
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Bibliographic InfoPaper provided by Barcelona Graduate School of Economics in its series Working Papers with number 455.
Date of creation: May 2010
Date of revision:
Beauty-Contest experiments; decision theory; reasoning hierarchy; ﬁnite mixture distribution; beta distribution; EM algorithm;
Other versions of this item:
- Antoni Bosch-Domènech & José Garcia Montalvo & Rosemarie Nagel & Albert Satorra, 2004. "Finite mixture analysis of beauty-contest data using generalised beta distributions," Economics Working Papers 737, Department of Economics and Business, Universitat Pompeu Fabra, revised May 2010.
- C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models; Switching Regression Models
- C44 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Operations Research; Statistical Decision Theory
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
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