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Comparing Guessing Games with homogeneous and heterogeneous players: Experimental results and a CH explanation

Author

Listed:
  • Eugen Kovac

    (University of Bonn and CERGE-EI)

  • Martin Vojtek

    (CERGE-EI and Czech National Bank)

  • Andreas Ortmann

    (CERGE-EI)

Abstract

We investigate the decisions of individuals in simple and complex environments. We use a version of the Guessing Game (Beauty-contest Game) as a vehicle for our investigation, employing mathematically talented students. We find that our subjects think in complex environments more carefully before making decisions. We rationalize our findings using the Cognitive Hierarchy (CH) model proposed by Camerer, Ho, and Chong (2002). We relate our results to the emerging literature on the decision making of collective actors.

Suggested Citation

  • Eugen Kovac & Martin Vojtek & Andreas Ortmann, 2008. "Comparing Guessing Games with homogeneous and heterogeneous players: Experimental results and a CH explanation," Economics Bulletin, AccessEcon, vol. 3(9), pages 1-9.
    • Handle: RePEc:ebl:ecbull:eb-07c90016
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    References listed on IDEAS

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    Cited by:

    1. Zafer Akin, 2023. "Asymmetric guessing games," Theory and Decision, Springer, vol. 94(4), pages 637-676, May.
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    3. Martin Kocher & Matthias Sutter & Florian Wakolbinger, 2014. "Social Learning in Beauty‐Contest Games," Southern Economic Journal, John Wiley & Sons, vol. 80(3), pages 586-613, January.
    4. Shu-Heng Chen & Ye-Rong Du & Lee-Xieng Yang, 2014. "Cognitive capacity and cognitive hierarchy: a study based on beauty contest experiments," Journal of Economic Interaction and Coordination, Springer;Society for Economic Science with Heterogeneous Interacting Agents, vol. 9(1), pages 69-105, April.

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    More about this item

    Keywords

    Guessing Game;

    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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