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A unified approach to comparative statics puzzles in experiments

  • Armin Schmutzler

    ()

    (Socioeconomic Institute, University of Zurich)

Many experimental studies implement two versions of one game for which agents� behavior is fundamentally different even though the Nash prediction is the same. This paper provides a novel explanation of such findings. Starting from the observation that many of the games under consideration satisfy the strategic-complementarity property, I obtain predictions for the direction of adjustment in response to parameter changes which do not require calculation of the equilibrium. I show that these predictions explain the experimental evidence very well. Further, I provide a behavioral justification of the approach, and I explore the relation to alternative explanations based on equilibrium selection theories and the quantal response equilibrium.

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File URL: http://www.econ.uzh.ch/static/wp_soi/wp0601.pdf
File Function: revised version, 2008
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Paper provided by Socioeconomic Institute - University of Zurich in its series SOI - Working Papers with number 0601.

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Length: 31 pages
Date of creation: Feb 2006
Date of revision: Nov 2008
Publication status: forthcoming in Games and Economic Behaviour
Handle: RePEc:soz:wpaper:0601
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