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Asymmetric Guessing Games

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  • AKIN, ZAFER

Abstract

This paper theoretically and experimentally investigates the behavior of asymmetric players in guessing games. The asymmetry is created by introducing k>1 replicas of one of the players. Two-player and restricted N-player cases are examined in detail. Based on the model parameters, the equilibrium is either unique in which all players choose zero or mixed in which the weak player (k=1) imitates the strong player (k>1). A series of experiments involving two and three-player repeated guessing games with unique equilibrium is conducted. We find that equilibrium behavior is observed less frequently and overall choices are farther from the equilibrium in two-player asymmetric games in contrast to symmetric games, but this is not the case in three-player games. Convergence towards equilibrium exists in all cases but asymmetry slows down the speed of convergence to the equilibrium in two, but not in three-player games. Furthermore, the strong players have a slight earning advantage over the weak players, and asymmetry increases discrepancy in choices (defined as the squared distance of choices from the winning number) in both games.

Suggested Citation

  • Akin, Zafer, 2020. "Asymmetric Guessing Games," MPRA Paper 103871, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:103871
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    More about this item

    Keywords

    Guessing game; asymmetry; convergence; game theory; experimental economics;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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