The aim of this investigation is to display how the use of classroom experiments may be a good pedagogical tool to teach the Nash equilibrium (NE) concept. The basic game for our purposes is a repeated version of the Beauty Contest Game (BCG), a simple guessing game whose repetition lets students react to other players’ choices and to converge iteratively to the equilibrium solution. We performed this experiment with undergraduate students without any previous knowledge about game theory. After four rounds, we observed in all groups a clear decreasing tendency in the average chosen number. So, our findings prove that, by playing a repeated BCG, students quickly learn how to reach the NE solution.
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Find related papers by JEL classification: A22 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Undergraduate C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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