Beauty contested: how much of Keynes' remains in behavioural economics' beauty contests?
In one of the most famous passages of the economic literature, John Maynard Keynes likens the stock market to a beauty contest (BC), in which the winners are those who anticipate the average opinion. In behavioural economics there have recently been attempts at investigating the BC experimentally. We argue that there exist important differences between Keynes' and behavioural economics' BCs. We identify several types of BCs and propose a taxonomy. We also suggest that, in spite of these differences, Keynes' theory of decision under uncertainty is central to understanding the actual behaviour observed in experimental BCs.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 18 (2011)
Issue (Month): 2 ()
|Contact details of provider:|| Web page: http://www.tandfonline.com/REJH20|
|Order Information:||Web: http://www.tandfonline.com/pricing/journal/REJH20|
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.:
- Güth, Werner & Kocher, Martin & Sutter, Matthias, 2001.
"Experimental 'beauty contests' with homogeneous and heterogeneous players and with interior and boundary equilibria,"
SFB 373 Discussion Papers
2001,45, Humboldt University of Berlin, Interdisciplinary Research Project 373: Quantification and Simulation of Economic Processes.
- Guth, Werner & Kocher, Martin & Sutter, Matthias, 2002. "Experimental 'beauty contests' with homogeneous and heterogeneous players and with interior and boundary equilibria," Economics Letters, Elsevier, vol. 74(2), pages 219-228, January.
- Güth, Werner & Kocher, Martin G. & Sutter, Matthias, 2002. "Experimental 'beauty contests' with homogeneous and heterogeneous players and with interior and boundary equilibria," Munich Reprints in Economics 18165, University of Munich, Department of Economics.
- Antoni Bosch-Dom�nech & Jos� G. Montalvo & Rosemarie Nagel & Albert Satorra, 2002.
"One, Two, (Three), Infinity, ...: Newspaper and Lab Beauty-Contest Experiments,"
American Economic Review,
American Economic Association, vol. 92(5), pages 1687-1701, December.
- Albert Satorra & Antoni Bosch-Domenech & Jose Garcia-Montalvo & Rosemarie Nagel, 2002. "One, two, (three), infinity: Newspaper and lab beauty-contest experiments," Artefactual Field Experiments 00011, The Field Experiments Website.
- Rosemarie Nagel & Antoni Bosch-Domènech & Albert Satorra & José García Montalvo, 1999. "One, two, (three), infinity: Newspaper and lab beauty-contest experiments," Economics Working Papers 438, Department of Economics and Business, Universitat Pompeu Fabra.
- repec:ebl:ecbull:v:3:y:2008:i:52:p:1-10 is not listed on IDEAS
- Duffy, John & Nagel, Rosemarie, 1997. "On the Robustness of Behaviour in Experimental "Beauty Contest" Games," Economic Journal, Royal Economic Society, vol. 107(445), pages 1684-1700, November.
- Novarese, Marco & Lanteri, Alessandro, 2007. "Individual learning: theory formation, and feedback in a complex task," MPRA Paper 3049, University Library of Munich, Germany.
- Anna Carabelli, 2002. "Speculation and reasonableness: a non-Bayesian theory of rationality," Chapters, in: Post Keynesian Econometrics, Microeconomics and the Theory of the Firm, chapter 10 Edward Elgar.
- S. Berninghaus & W. Güth, 2007. "Experimental Economics," Chapters, in: Elgar Companion to Neo-Schumpeterian Economics, chapter 66 Edward Elgar.
- Alessandro Lanteri & Marco Novarese, 2008. "The beauty of the contest: A novel approach to experimental beauty contests," Economics Bulletin, AccessEcon, vol. 3(52), pages 1-10.
- Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-26, December.
- Tirole, Jean, 1982. "On the Possibility of Speculation under Rational Expectations," Econometrica, Econometric Society, vol. 50(5), pages 1163-81, September.
When requesting a correction, please mention this item's handle: RePEc:taf:eujhet:v:18:y:2011:i:2:p:269-285. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael McNulty)
If references are entirely missing, you can add them using this form.