A Popperian test of level-k theory
We report an experimental test of level-k theory, applied to three simple games with non-neutral frames: Coordination, Discoordination and Hide and Seek. Using the same frame for all three games, we derive hypotheses that apply across the games and are independent of prior assumptions about salience. Those hypotheses are not confirmed by our experimental results. Our findings contrast with previous research which has fitted parameterised level-k models to Hide and Seek data. We show that, as a theory-testing criterion, the existence of a plausible model that replicates the main patterns in these data has a high probability of false positives.
|Date of creation:||26 Sep 2012|
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- Nicholas Bardsley & Judith Mehta & Chris Starmer & Robert Sugden, 2008.
"Explaining Focal Points: Cognitive Hierarchy Theory versus Team Reasoning,"
2008-17, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
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- Nicholas Bardsley & Judith Mehta & Chris Starmer & Robert Sugden, 2008. "Explaining Focal Points: Cognitive Hierarchy Theory versus Team Reasoning," Discussion Papers 2008-17, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
- Rubinstein, Ariel, 1999.
"Experience from a Course in Game Theory: Pre- and Postclass Problem Sets as a Didactic Device,"
Games and Economic Behavior,
Elsevier, vol. 28(1), pages 155-170, July.
- Rubinstein, A., 1999. "Experience from a Course in Game Theory: Pre and Post-Class Problem Sets as a Didactic Device," Papers 7-99, Tel Aviv.
- A. Rubinstein, 1999. "Experience from a Course in Game Theory: Pre- and Post-class Problem Sets as a Didactic Device," Princeton Economic Theory Papers 00s4, Economics Department, Princeton University.
- Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-1326, December.
- Vincent P. Crawford & Uri Gneezy & Yuval Rottenstreich, 2008. "The Power of Focal Points Is Limited: Even Minute Payoff Asymmetry May Yield Large Coordination Failures," American Economic Review, American Economic Association, vol. 98(4), pages 1443-1458, September.
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