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Strategic sophistication of adolescents ? Evidence from experimental normal-form games

  • Simon Czermak


  • Francesco Feri


  • Daniela R?tzler


  • Matthias Sutter


We examine the strategic sophistication of adolescents, aged 10 to 17 years, in experimental normal-form games. Besides making choices, subjects have to state their first- and second-order beliefs. We find that choices are more often a best reply to beliefs if any player has a dominant strategy and equilibrium payoffs are not too unequal. Using a mixture model we can estimate for each subject the probability to be any of eight different strategic and non-strategic types. The econometric estimation reveals that older subjects are more likely to eliminate dominated strategies, and that subjects with good math grades are more strategic.

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Paper provided by Faculty of Economics and Statistics, University of Innsbruck in its series Working Papers with number 2010-15.

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Length: 46
Date of creation: Jul 2010
Date of revision:
Handle: RePEc:inn:wpaper:2010-15
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  1. Dietmar Fehr & Dorothea Kübler & David Danz, 2010. "Information and Beliefs in a Repeated Normal-form Game," CIG Working Papers SP II 2010-02, Wissenschaftszentrum Berlin (WZB), Research Unit: Competition and Innovation (CIG).
  2. Matthias Sutter & Francesco Feri & Martin G. Kocher & Peter Martinsson & Katarina Nordblom & Daniela Rutzler, 2010. "Social preferences in childhood and adolescence - A large-scale experiment," Working Paper series, University of East Anglia, Centre for Behavioural and Experimental Social Science (CBESS) 10-07, School of Economics, University of East Anglia, Norwich, UK..
  3. Sutter, Matthias & Kocher, Martin G., 2007. "Trust and trustworthiness across different age groups," Munich Reprints in Economics 18182, University of Munich, Department of Economics.
  4. Sutter, Matthias & Czermak, Simon & Feri, Francesco, 2010. "Strategic Sophistication of Individuals and Teams in Experimental Normal-Form Games," IZA Discussion Papers 4732, Institute for the Study of Labor (IZA).
  5. Costa-Gomes, Miguel & Crawford, Vincent P. & Broseta, Bruno, 1998. "Cognition and Behavior in Normal-Form Games: An Experimental Study," University of California at San Diego, Economics Working Paper Series qt1vn4h7x5, Department of Economics, UC San Diego.
  6. Murnighan, J. Keith & Saxon, Michael Scott, 1998. "Ultimatum bargaining by children and adults," Journal of Economic Psychology, Elsevier, vol. 19(4), pages 415-445, August.
  7. Stahl Dale O. & Wilson Paul W., 1995. "On Players' Models of Other Players: Theory and Experimental Evidence," Games and Economic Behavior, Elsevier, vol. 10(1), pages 218-254, July.
  8. Matthias Sutter, 2007. "Outcomes versus intentions. on the nature of fair behavior and its development with age," Artefactual Field Experiments 00109, The Field Experiments Website.
  9. Haruvy, Ernan & Stahl, Dale O. & Wilson, Paul W., 1999. "Evidence for optimistic and pessimistic behavior in normal-form games," Economics Letters, Elsevier, vol. 63(3), pages 255-259, June.
  10. Bhatt, Meghana & Camerer, Colin F., 2005. "Self-referential thinking and equilibrium as states of mind in games: fMRI evidence," Games and Economic Behavior, Elsevier, vol. 52(2), pages 424-459, August.
  11. Pedro Rey-Biel, . "Equilibrium Play and Best Response to (Stated) Beliefs in Normal Form Games," Working Papers 318, Barcelona Graduate School of Economics.
  12. Jacob K. Goeree & Charles A. Holt, 2000. "A Model of Noisy Introspection," Virginia Economics Online Papers 343, University of Virginia, Department of Economics.
  13. Miguel A. Costa-Gomes & Georg Weizs�cker, 2008. "Stated Beliefs and Play in Normal-Form Games," Review of Economic Studies, Oxford University Press, vol. 75(3), pages 729-762.
  14. Harbaugh, William T & Krause, Kate, 2000. "Children's Altruism in Public Good and Dictator Experiments," Economic Inquiry, Western Economic Association International, vol. 38(1), pages 95-109, January.
  15. J.Keith Murnighan & MIchael Saxon, 1998. "Ultimatum bargaining by children and adults," Artefactual Field Experiments 00100, The Field Experiments Website.
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