Quotation Berger, Ulrich, De Silva, Hannelore, Fellner-Röhling, Gerlinde. 2016. Cognitive Hierarchies in the Minimizer Game. Journal of Economic Behavior and Organization 130, 337-348.


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Abstract

Experimental tests of choice predictions in one-shot games show only little support for Nash equilibrium (NE). Poisson Cognitive Hierarchy (PCH) and level-k (LK) are behavioral models of the thinking-steps variety where subjects differ in the number of levels of iterated reasoning they perform. Camerer et al. (2004) claim that substituting the Poisson parameter τ = 1.5 yields a parameter-free PCH model (pfPCH) which predicts experimental data considerably better than NE. We design a new multi-person game, the Minimizer Game, as a testbed to compare initial choice predictions of NE, pfPCH and LK. Data obtained from two large-scale online experiments strongly reject NE and LK, but are well in line with the point-prediction of pfPCH.

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Publication's profile

Status of publication Published
Affiliation WU
Type of publication Journal article
Journal Journal of Economic Behavior and Organization
Citation Index SSCI
WU Journalrating 2009 A
WU-Journal-Rating new FIN-A, STRAT-A, VW-B, WH-A
Language English
Title Cognitive Hierarchies in the Minimizer Game
Volume 130
Year 2016
Page from 337
Page to 348
Reviewed? Y
URL http://www.sciencedirect.com/science/article/pii/S0167268116301639
DOI http://dx.doi.org/10.1016/j.jebo.2016.08.004
JEL C72; C90; D01; D83

Associations

Projects
Cognitive Hierarchy in the one-shot Minimizer Game
People
Berger, Ulrich (Details)
De Silva, Hannelore (Details)
External
Fellner-Röhling, Gerlinde (University of Ulm, Germany)
Organization
Institute for Economic Policy and Industrial Economics IN (Details)
Institute for Analytical Economics IN (Details)
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