Level-k reasoning in a generalized beauty contest

• 成果类型: Article
• 署名作者: Shapiro, Dmitry; Shi, Xianwen; Zillante, Artie
• 署名单位: University of North Carolina; University of North Carolina Charlotte; University of Toronto
• 刊物名称: GAMES AND ECONOMIC BEHAVIOR
• ISSN/ISSBN: 0899-8256
• DOI: 10.1016/j.geb.2014.04.002
• 发表日期: 2014
• 页码: 308-329
• 关键词: Level-k models; Beauty contests; coordination games

摘要

We study how the predictive power of level-k models changes as we perturb the classical beauty contest setting along two dimensions: the strength of the coordination motive and the information symmetry. We use a variation of the Morris and Shin (2002) model as the unified framework for our study, and find that the predictive power of level-k models varies considerably along these two dimensions. Level-k models are successful in predicting subject behavior in settings with symmetric information and a strong coordination motive. Their predictive power weakens significantly when either private information is introduced or the importance of the coordination motive is decreased. (C) 2014 Elsevier Inc. All rights reserved.