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How Portable Is Level‐0 Behavior? A Test of Level‐k Theory in Games With Non‐Neutral Frames

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  • Shaun Hargreaves Heap
  • David Rojo Arjona
  • Robert Sugden

Abstract

We test the portability of level‐0 assumptions in level‐k theory in an experimental investigation of behavior in Coordination, Discoordination, and Hide and Seek games with common, non‐neutral frames. Assuming that level‐0 behavior depends only on the frame, we derive hypotheses that are independent of prior assumptions about salience. Those hypotheses are not confirmed. Our findings contrast with previous research which has fitted parameterized level‐k models to Hide and Seek data. We show that, as a criterion of successful explanation, the existence of a plausible model that replicates the main patterns in these data has a high probability of false positives.

Suggested Citation

  • Shaun Hargreaves Heap & David Rojo Arjona & Robert Sugden, 2014. "How Portable Is Level‐0 Behavior? A Test of Level‐k Theory in Games With Non‐Neutral Frames," Econometrica, Econometric Society, vol. 82(3), pages 1133-1151, May.
  • Handle: RePEc:wly:emetrp:v:82:y:2014:i:3:p:1133-1151
    DOI: 10.3982/ECTA11132
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    Citations

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    Cited by:

    1. Shurchkov, Olga, 2016. "Public announcements and coordination in dynamic global games: Experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 61(C), pages 20-30.
    2. repec:eee:gamebe:v:106:y:2017:i:c:p:16-37 is not listed on IDEAS
    3. Marco Mantovani, 2015. "Limited backward induction: foresight and behavior in sequential games," Working Papers 289, University of Milano-Bicocca, Department of Economics, revised Jan 2015.
    4. Subhasish M. Chowdhury & Dan Kovenock & David Rojo Arjona & Nathaniel T. Wilcox, 2016. "Focality and asymmetry in multi-battle contests," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 16-12, School of Economics, University of East Anglia, Norwich, UK..
    5. repec:eee:jeborg:v:156:y:2018:i:c:p:219-224 is not listed on IDEAS
    6. repec:eee:matsoc:v:90:y:2017:i:c:p:191-207 is not listed on IDEAS
    7. Guilhem Lecouteux, 2017. "Bayesian Game Theorists and Non-Bayesian Players," GREDEG Working Papers 2017-30, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis, revised Jul 2018.
    8. Alessandro Sontuoso & Sudeep Bhatia, 2017. "A Notion of Prominence for Games with Natural-Language Labels," PPE Working Papers 0009, Philosophy, Politics and Economics, University of Pennsylvania, revised Nov 2018.
    9. Berger, Ulrich & De Silva, Hannelore & Fellner-Röhling, Gerlinde, 2016. "Cognitive hierarchies in the minimizer game," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 337-348.
    10. Wolff, Irenaeus, 2016. "Elicited salience and salience-based level-k," Economics Letters, Elsevier, vol. 141(C), pages 134-137.
    11. Irenaeus Wolff, 2017. "Lucky Numbers in Simple Games," TWI Research Paper Series 107, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
    12. Parravano, Melanie & Poulsen, Odile, 2015. "Stake size and the power of focal points in coordination games: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 94(C), pages 191-199.
    13. Kota Murayama, 2015. "Robust Predictions under Finite Depth of Reasoning," Discussion Paper Series DP2015-28, Research Institute for Economics & Business Administration, Kobe University.
    14. Nobuyuki Hanaki, 2019. "Cognitive Ability and Observed Behavior in Laboratory Experiments: Implications for Macroeconomic Theory," GREDEG Working Papers 2019-22, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    15. Marcus Dittrich & Kristina Leipold, 2014. "Gender Differences in Strategic Reasoning," CESifo Working Paper Series 4763, CESifo Group Munich.
    16. Nagel, Rosemarie & Bühren, Christoph & Frank, Björn, 2017. "Inspired and inspiring: Hervé Moulin and the discovery of the beauty contest game," Mathematical Social Sciences, Elsevier, vol. 90(C), pages 191-207.
    17. Carlos Alós-Ferrer & Johannes Buckenmaier, 2018. "Cognitive sophistication and deliberation times," ECON - Working Papers 292, Department of Economics - University of Zurich, revised Apr 2019.
    18. Marco Faillo & Alessandra Smerilli & Robert Sugden, 2016. "Can a single theory explain coordination? An experiment on alternative modes of reasoning and the conditions under which they are used," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 16-01, School of Economics, University of East Anglia, Norwich, UK..
    19. repec:eee:jeborg:v:140:y:2017:i:c:p:317-335 is not listed on IDEAS
    20. Ireneaus Wolff, 2016. "Elicited Salience and Salience-Based Level-k," TWI Research Paper Series 103, Thurgauer Wirtschaftsinstitut, Universität Konstanz.

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