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One, two, (three), infinity: Newspaper and lab beauty-contest experiments

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dc.contributor.author Nagel, Rosemarie
dc.contributor.author Bosch-Domènech, Antoni
dc.contributor.author Satorra, Albert
dc.contributor.author García Montalvo, José
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2017-07-26T10:50:42Z
dc.date.available 2017-07-26T10:50:42Z
dc.date.issued 1999-11-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=438
dc.identifier.citation American Economic Review, 92, 5, (2002)
dc.identifier.uri http://hdl.handle.net/10230/573
dc.description.abstract "Beauty-contest" is a game in which participants have to choose, typically, a number in [0,100], the winner being the person whose number is closest to a proportion of the average of all chosen numbers. We describe and analyze Beauty-contest experiments run in newspapers in UK, Spain, and Germany and find stable patterns of behavior across them, despite the uncontrollability of these experiments. These results are then compared with lab experiments involving undergraduates and game theorists as subjects, in what must be one of the largest empirical corroborations of interactive behavior ever tried. We claim that all observed behavior, across a wide variety of treatments and subject pools, can be interpreted as iterative reasoning. Level-1 reasoning, Level-2 reasoning and Level-3 reasoning are commonly observed in all the samples, while the equilibrium choice (Level-Maximum reasoning) is only prominently chosen by newspaper readers and theorists. The results show the empirical power of experiments run with large subject-pools, and open the door for more experimental work performed on the rich platform offered by newspapers and magazines.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 438
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title One, two, (three), infinity: Newspaper and lab beauty-contest experiments
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2017-07-23T02:05:03Z
dc.subject.keyword experiments
dc.subject.keyword bounded rationality
dc.subject.keyword beauty-contest
dc.subject.keyword parallelism
dc.subject.keyword leex
dc.subject.keyword Behavioral and Experimental Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess


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