Inferring Strategies from Observed Actions: A Nonparametric Binary Tree Classification Approach
This paper introduces a nonparametric binary classification tree approach to inferring unobserved strategies from the observed actions of economic agents. The strategies are in the form of possibly nested if- then statements. We apply our approach to experimental data from the repeated ultimatum game, which was conducted in four different countries by Roth et al. (1991). We find that strategy inference is consistent with existing inference, provides new explanations for subject behavior, and provides new empirically--based hypotheses regarding ultimatum game strategies. We conclude that strategy inference is potentially useful as a complementary method of statistical inference in applied research.
|Date of creation:||20 Jul 2000|
|Date of revision:||02 Aug 2001|
|Note:||Type of Document - pdf; prepared on pc; to print on any; pages: 27; figures: included|
|Contact details of provider:|| Web page: http://econwpa.repec.org|
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.:
- Cooper, Suzanne J, 1998. "Multiple Regimes in U.S. Output Fluctuations," Journal of Business & Economic Statistics, American Statistical Association, vol. 16(1), pages 92-100, January.
- Jim Engle-Warnick & Robert L. Slonim, 2001.
"Inferring Repeated Game Strategies From Actions: Evidence From Trust Game Experiments,"
2001-W13, Economics Group, Nuffield College, University of Oxford.
- Jim Engle-Warnick & Robert Slonim, 2006. "Inferring repeated-game strategies from actions: evidence from trust game experiments," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 28(3), pages 603-632, 08.
- Jim Engle-Warnick & Robert L. Slonim, 2001. "Inferring Repeated Game Strategies From Actions: Evidence From Trust Game Experiments," Economics Series Working Papers 2001-W13, University of Oxford, Department of Economics.
- Durlauf, S.M. & Johnson, P.A., 1995.
"Multiple Regimes and Cross-Country Growth Behavior,"
9419r, Wisconsin Madison - Social Systems.
- Durlauf, Steven N & Johnson, Paul A, 1995. "Multiple Regimes and Cross-Country Growth Behaviour," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 10(4), pages 365-84, Oct.-Dec..
- Durlauf, S.N. & Johnson, P.A., 1994. "Multiple Regimes and Cross-Country Growth Behavior," Working papers 9419, Wisconsin Madison - Social Systems.
- Alvin E. Roth & V. Prasnikar & M. Okuno-Fujiwara & S. Zamir, 1998.
"Bargaining and market behavior in Jerusalem, Liubljana, Pittsburgh and Tokyo: an experimental study,"
Levine's Working Paper Archive
344, David K. Levine.
- Roth, Alvin E. & Vesna Prasnikar & Masahiro Okuno-Fujiwara & Shmuel Zamir, 1991. "Bargaining and Market Behavior in Jerusalem, Ljubljana, Pittsburgh, and Tokyo: An Experimental Study," American Economic Review, American Economic Association, vol. 81(5), pages 1068-95, December.
- John Duffy & Jim Warnick, 1999. "Using Symbolic Regression to Infer Strategies from Experimental Data," Computing in Economics and Finance 1999 1033, Society for Computational Economics.
- Jim Engle-Warnick & Bradley Ruffle, 2006. "The Strategies Behind Their Actions: A Method To Infer Repeated-Game Strategies And An Application To Buyer Behavior," Departmental Working Papers 2005-04, McGill University, Department of Economics.
- Duffy, John & Engle-Warnick, Jim, 2006.
"Multiple Regimes in U.S. Monetary Policy? A Nonparametric Approach,"
Journal of Money, Credit and Banking,
Blackwell Publishing, vol. 38(5), pages 1363-1377, August.
- John Duffy and Jim Engle-Warnick, 2001. "Multiple Regimes in U.S. Monetary Policy? A Nonparametric Approach," Computing in Economics and Finance 2001 151, Society for Computational Economics.
- Bruce E. Hansen, 1996.
"Sample Splitting and Threshold Estimation,"
Boston College Working Papers in Economics
319., Boston College Department of Economics, revised 12 May 1998.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpem:0004002. 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: (EconWPA)
If references are entirely missing, you can add them using this form.