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 InfoPaper provided by Purdue University, Department of Economics in its series Purdue University Economics Working Papers with number 1191.
Length: 30 pages
Date of creation: Aug 2006
Date of revision:
Game Theory ; Experiments ; Coordination ; Common Knowledge;
Other versions of this item:
- Timothy Cason & Tridib Sharma, 2007. "Recommended play and correlated equilibria: an experimental study," Economic Theory, Springer, vol. 33(1), pages 11-27, October.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2006-09-03 (All new papers)
- NEP-CBE-2006-09-03 (Cognitive & Behavioural Economics)
- NEP-EXP-2006-09-03 (Experimental Economics)
- NEP-GTH-2006-09-03 (Game Theory)
- NEP-KNM-2006-09-03 (Knowledge Management & Knowledge Economy)
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