Learning in and about Games
We study finitely repeated 2 / 2 normal form games, where players have incomplete information about their opponentsï¿½ payoffs. In a laboratory experiment we investigate whether players (a) learn the game they are playing, (b) learn to predict the behavior of their opponent, and (c) learn to play according to a Nash equilibrium of the repeated game. Our results show that the success in learning the opponentï¿½s type depends on the characteristics of the true game. The learning success is much higher for games with pure strategy Nash equilibria than for games with a unique mixed strategy Nash equilibrium, and it is higher for games with symmetric pure strategy Nash equilibria than for games with asymmetric equilibria. Moreover, subjects learn to predict the opponentsï¿½ behavior very well. However, they rarely play according to a Nash equilibrium and we observe no correlation between equilibrium play and learning about the game.
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- John H. Nachbar, 1997.
"Prediction, Optimization, and Learning in Repeated Games,"
Econometric Society, vol. 65(2), pages 275-310, March.
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- John Nachbar, 2010. "Prediction, Optimization and Learning in Repeated Games," Levine's Working Paper Archive 576, David K. Levine.
- Drew Fudenberg & David K. Levine, 1998.
"Learning in Games,"
Levine's Working Paper Archive
2222, David K. Levine.
- Cox, James C. & Shachat, Jason & Walker, Mark, 2001. "An Experiment to Evaluate Bayesian Learning of Nash Equilibrium Play," Games and Economic Behavior, Elsevier, vol. 34(1), pages 11-33, January.
- Cooper, Russell & De Jong, Douglas V. & Forsythe, Robert & Ross, Thomas W., 1992. "Forward induction in coordination games," Economics Letters, Elsevier, vol. 40(2), pages 167-172, October.
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