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http://hdl.handle.net/10419/36352
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| Title: | | Strategic sophistication of individuals and teams in experimental normal-form games  |
| Authors: | | Sutter, Matthias Czermak, Simon Feri, Francesco |
| Issue Date: | | 2010 |
| Series/Report no.: | | IZA Discussion Papers 4732 |
| Abstract: | | We present an experiment on strategic thinking and behavior of individuals and teams in one-shot normal-form games. Besides making choices, decision makers have to state their first- and second-order beliefs. We find that teams play the Nash strategy significantly more often, and their choices are more often consistent by being a best reply to first order beliefs. We identify the complexity of a game and the payoffs in equilibrium as determining the likelihood of consistent behavior according to textbook rationality. Using a mixture model, the estimated probability to play strategically is 62% for teams, but only 40% for individuals. |
| Subjects: | | Strategic sophistication beliefs experiment team decision making individual decision making |
| JEL: | | C72 C91 C92 |
| Document Type: | | Working Paper |
| Appears in Collections: | | IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)
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