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Naivete and Sophistication in Initial and Repeated Play in Games

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  • Garcia-Pola, Bernardo
  • Iriberri, Nagore

Abstract

Naive, non-equilibrium, behavioral rules, compared to more sophisticated equilibrium theory, are often better in describing individuals' initial play in games. Additionally, in repeated play in games, when individuals have the oppor- tunity to learn about their opponents' past behavior, learning models of different sophistication levels are successful in explaining how individuals modify their behavior in response to feedback. How do subjects following different behavioral rules in initial play modify their behavior after learning about past behavior? This study links both initial and repeated play in games, analyzing elicited behavior in 3x3 normal-form games using a within-subject laboratory design. We classify individuals into different behavioral rules in both initial and repeated play and test whether and/or how naivete and sophistication in initial play correlates with naivete and sophistication in repeated play. We find no evidence for a correlation between naivete and sophistication in initial and repeated play.

Suggested Citation

  • Garcia-Pola, Bernardo & Iriberri, Nagore, 2019. "Naivete and Sophistication in Initial and Repeated Play in Games," CEPR Discussion Papers 14088, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:14088
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    References listed on IDEAS

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    More about this item

    Keywords

    adaptive and sophisticated learning; initial play; level-k thinking; mixture-of-types estimation; Naivete; repeated play; Sophistication;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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