IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

The Dirty Faces Game Revisited

Listed author(s):
  • Ralph-C. Bayer


    (School of Economics, University of Adelaide)

  • Mickey Chan

    (School of Economics, University of Adelaide)

Weber (2001) uses the Dirty Faces Game to examine the depth of iterated rationality. Weber does not consider equilibria that contain weakly dominated actions. So he implicitly assumes that it is common knowledge that no one ever uses weakly dominated actions. We show that allowing for equilibria in weakly dominated strategies greatly extents the set of potentially rational actions. The original game therefore lacks discriminatory power, as many actions categorised as irrational by Weber can actually be part of an equilibrium strategy. We slightly modify the payoff structure and establish strict dominance, which leads to a unique equilibrium. The resulting dominance-solvable game is implemented in an experiment. We find that subjects are either able to iterate right to the equilibrium or fail to do so when two or more steps of iteration are necessary. Virtually all subjects were able to do one step of iteration. Further, we find evidence that the lack of confidence in other players' iterative abilities induces deviations from equilibrium play.

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.

File URL:
Download Restriction: no

Paper provided by University of Adelaide, School of Economics in its series School of Economics Working Papers with number 2007-01.

in new window

Length: 26 pages
Date of creation: 2007
Handle: RePEc:adl:wpaper:2007-01
Contact details of provider: Postal:
Adelaide SA 5005

Phone: (618) 8303 5540
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:adl:wpaper:2007-01. 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: (Eran Binenbaum)

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.