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Strategic interactions and belief formation: An experiment

Author

Listed:
  • Kyle Hyndman

    (Department of Economics - SMU - Southern Methodist University [Dallas, TX, USA])

  • Antoine Terracol

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Jonathan Vaksmann

    (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Traditional models of belief formation in repeated games assume adaptive players who do not take strategic interactions into account. We find that these approaches are limited in the sense that people think more strategically and realize that, in contrast with the classical view, their own actions are likely to influence their opponents' behaviour.

Suggested Citation

  • Kyle Hyndman & Antoine Terracol & Jonathan Vaksmann, 2010. "Strategic interactions and belief formation: An experiment," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00607238, HAL.
    • Handle: RePEc:hal:cesptp:hal-00607238
    DOI: 10.1080/13504850903120691
    Note: View the original document on HAL open archive server: https://hal.science/hal-00607238v1
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    References listed on IDEAS

    as
    1. Terracol, Antoine & Vaksmann, Jonathan, 2009. "Dumbing down rational players: Learning and teaching in an experimental game," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 54-71, May.
    2. Battalio, Raymond & Samuelson, Larry & Van Huyck, John, 2001. "Optimization Incentives and Coordination Failure in Laboratory Stag Hunt Games," Econometrica, Econometric Society, vol. 69(3), pages 749-764, May.
    3. Yaw Nyarko & Andrew Schotter, 2002. "An Experimental Study of Belief Learning Using Elicited Beliefs," Econometrica, Econometric Society, vol. 70(3), pages 971-1005, May.
    4. Wolf Ze'ev Ehrblatt & Kyle Hyndman & Erkut Y. ÄOzbay & Andrew Schotter, 2006. "Convergence: An Experimental Study," Levine's Working Paper Archive 122247000000001148, David K. Levine.
    5. Cheung, Yin-Wong & Friedman, Daniel, 1997. "Individual Learning in Normal Form Games: Some Laboratory Results," Games and Economic Behavior, Elsevier, vol. 19(1), pages 46-76, April.
    6. Camerer, Colin F. & Ho, Teck-Hua & Chong, Juin-Kuan, 2002. "Sophisticated Experience-Weighted Attraction Learning and Strategic Teaching in Repeated Games," Journal of Economic Theory, Elsevier, vol. 104(1), pages 137-188, May.
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    Cited by:

    1. Masaki Aoyagi & Guillaume Frechette & Sevgi Yuksel, 2021. "Beliefs in Repeated Games," ISER Discussion Paper 1119r, Institute of Social and Economic Research, The University of Osaka.
    2. Masaki Aoyagi & Guillaume R. Fréchette & Sevgi Yuksel, 2024. "Beliefs in Repeated Games: An Experiment," American Economic Review, American Economic Association, vol. 114(12), pages 3944-3975, December.

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