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The evolution of choice and learning in the two-person beauty contest game from kindergarten to adulthood

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  • Brocas, Isabelle
  • Carrillo, Juan D.

Abstract

We develop a graphical, non-analytical version of the two-person beauty contest game to study the developmental trajectory of instinctive behavior and learning from kindergarten to adulthood. These are captured by observing behavior when the game is played in two consecutive trials. We find that equilibrium behavior in the first trial increases significantly between 5 and 10 years of age (from 17.9% to 61.4%) and stabilizes afterwards. Children of all ages learn to play the equilibrium, especially when they observe an equilibrium choice by the rival. Our younger children are the weakest learners mainly because they are less frequently paired with rivals who play at equilibrium. Finally, the choice process data suggests that participants who play at equilibrium in the second trial are also performing fewer steps before reaching a decision, indicating that they are less hesitant about their strategy.

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  • Brocas, Isabelle & Carrillo, Juan D., 2020. "The evolution of choice and learning in the two-person beauty contest game from kindergarten to adulthood," Games and Economic Behavior, Elsevier, vol. 120(C), pages 132-143.
    • Handle: RePEc:eee:gamebe:v:120:y:2020:i:c:p:132-143
    DOI: 10.1016/j.geb.2019.12.009
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    Cited by:

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    2. Oberrauch, Luis & Kaiser, Tim & Seeber, Günther, 2023. "Measuring economic competence of youth with a short scale," Journal of Economic Psychology, Elsevier, vol. 97(C).
    3. Henning Hermes & Daniel Schunk, 2022. "If you could read my mind–an experimental beauty-contest game with children," Experimental Economics, Springer;Economic Science Association, vol. 25(1), pages 229-253, February.
    4. Maria Elena Latino & Marta Menegoli & Fulvio Signore & Maria Chiara De Lorenzi, 2023. "The Potential of Gamification for Social Sustainability: Meaning and Purposes in Agri-Food Industry," Sustainability, MDPI, vol. 15(12), pages 1-18, June.
    5. Brocas, Isabelle & Carrillo, Juan D., 2020. "Introduction to special issue “Understanding Cognition and Decision Making by Children.” Studying decision-making in children: Challenges and opportunities," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 777-783.
    6. Brocas, Isabelle & Carrillo, Juan D., 2021. "Young children use commodities as an indirect medium of exchange," Games and Economic Behavior, Elsevier, vol. 125(C), pages 48-61.
    7. Brocas, Isabelle & Carrillo, Juan D., 2022. "Adverse selection and contingent reasoning in preadolescents and teenagers," Games and Economic Behavior, Elsevier, vol. 133(C), pages 331-351.

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    More about this item

    Keywords

    Developmental game theory; Laboratory experiment; Steps of dominance; Two-person beauty contest;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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