Signaling without common prior: An experiment
The common prior assumption is pervasive in game-theoretic models with incomplete information. This paper investigates experimentally the importance of inducing a common prior in a two-person signaling game. For a specific probability distribution of the sender’s type, the long-run behavior without an induced common prior is shown to be different from the behavior when a common prior is induced, while for other distributions behavior is similar under both regimes. We also present a learning model that allows players to learn about the other players’ strategies and the prior distribution of the sender’s type. We show that this learning model accurately accounts for all main features of the data.
|Date of creation:||Apr 2009|
|Contact details of provider:|| Postal: School of Economics University of Nottingham University Park Nottingham NG7 2RD|
Phone: (44) 0115 951 5620
Fax: (0115) 951 4159
Web page: http://www.nottingham.ac.uk/economics/cedex/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Brandts, Jordi & Holt, Charles A, 1993. "Adjustment Patterns and Equilibrium Selection in Experimental Signaling Games," International Journal of Game Theory, Springer;Game Theory Society, vol. 22(3), pages 279-302.
- Werner Güth & Radosveta Ivanova-Stenzel, "undated".
"Asymmetric Auction Experiments With(out) Commonly Known Beliefs,"
Papers on Strategic Interaction
2002-36, Max Planck Institute of Economics, Strategic Interaction Group.
- Guth, Werner & Ivanova-Stenzel, Radosveta, 2003. "Asymmetric auction experiments with(out) commonly known beliefs," Economics Letters, Elsevier, vol. 80(2), pages 195-199, August.
- Banks, Jeffrey & Camerer, Colin & Porter, David., 1990.
"An Experimental Analysis of Nash Refinements in Signaling Games,"
740, California Institute of Technology, Division of the Humanities and Social Sciences.
- Banks Jeffrey & Camerer Colin & Porter David, 1994. "An Experimental Analysis of Nash Refinements in Signaling Games," Games and Economic Behavior, Elsevier, vol. 6(1), pages 1-31, January.
- David J. Cooper & Susan Garvin & John H. Kagel, 1997. "Signalling and Adaptive Learning in an Entry Limit Pricing Game," RAND Journal of Economics, The RAND Corporation, vol. 28(4), pages 662-683, Winter.
- Christopher M. Anderson & Colin F. Camerer, 2000. "Experience-weighted attraction learning in sender-receiver signaling games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 16(3), pages 689-718.
- Broseta, Bruno & Costa-Gomes, Miguel & Crawford, Vincent P., 2000.
"Cognition and Behavior in Normal-Form Games: An Experimental Study,"
University of California at San Diego, Economics Working Paper Series
qt0fp8278k, Department of Economics, UC San Diego.
- Costa-Gomes, Miguel & Crawford, Vincent P & Broseta, Bruno, 2001. "Cognition and Behavior in Normal-Form Games: An Experimental Study," Econometrica, Econometric Society, vol. 69(5), pages 1193-1235, September.
- 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.
- Miguel Costa-Gomes & Vincent P. Crawford & Bruno Broseta, "undated". "Cognition and Behavior in Normal-Form Games:An Experimental Study," Discussion Papers 00/45, Department of Economics, University of York.
- Eddie Dekel & Drew Fudenberg & David K Levine, 2002.
"Learning to Play Bayesian Games,"
Levine's Working Paper Archive
625018000000000151, David K. Levine.
- Eddie Dekel & Drew Fudenberg & David K. Levine, 2001. "Learning to Play Bayesian Games," Harvard Institute of Economic Research Working Papers 1926, Harvard - Institute of Economic Research.
- Dekel, Eddie & Fudenberg, Drew & Levine, David, 2004. "Learning to Play Bayesian Games," Scholarly Articles 3200612, Harvard University Department of Economics.
- Eddie Dekel & Drew Fudenberg & David K. Levine, 2000. "Learning to Play Bayesian Games," Discussion Papers 1322, Northwestern University, Center for Mathematical Studies in Economics and Management Science, revised Jul 2001.
- Oechssler, Jorg & Schipper, Burkhard, 2003.
"Can you guess the game you are playing?,"
Games and Economic Behavior,
Elsevier, vol. 43(1), pages 137-152, April.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
- Brandts, Jordi & Holt, Charles A, 1992. "An Experimental Test of Equilibrium Dominance in Signaling Games," American Economic Review, American Economic Association, vol. 82(5), pages 1350-1365, December.
When requesting a correction, please mention this item's handle: RePEc:not:notcdx:2009-08. 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: (Suzanne Robey)
If references are entirely missing, you can add them using this form.