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This paper experimentally investigates social learning in a two-agent prediction game with both exogenous and endogenous ordering of decisions and a continuous action space. Given that individuals regularly fail to apply rational timing, we refrain from implementing optimal timing of decisions...
Persistent link: https://www.econbiz.de/10009779323
our hypotheses with a lab experiment on a sequential pricing game. We find a striking difference in pricing behaviour …
Persistent link: https://www.econbiz.de/10014437914
Our market experiment investigates the extent to which traders learn from the price, differentiating between situations …
Persistent link: https://www.econbiz.de/10011280005
Using belief elicitation, the paper investigates the formation and the evolution of beliefs in a signalling game in which a common prior on Sender's type is not induced. Beliefs are elicited about the type of the Sender and about the strategies of the players. The experimental subjects often...
Persistent link: https://www.econbiz.de/10009535526
Before embarking on a project, a principal must often rely on an agent to learn about its profitability. We model this learning as a two-armed bandit problem and highlight the interaction between learning (experimentation) and production. We derive the optimal contract for both experimentation...
Persistent link: https://www.econbiz.de/10011926023
This paper uses an experimental design of voluntary information acquisition to assess the information assumptions of different learning models. The design is implemented in two-stage asymmetric-information games. Subjects' information-seeking behavior reveals that they tend to choose certain...
Persistent link: https://www.econbiz.de/10012938179
We study the design of sequential procurement strategies that integrate stochastic and strategic information. We consider a buyer who repeatedly demands a certain good and is unable to commit to long-term contracts. In each time period, the buyer makes a price offer to a seller who has private,...
Persistent link: https://www.econbiz.de/10012065183
This paper proposes a behavioral model of social learning that unies various forms of inferential reasoning in one hierarchy of types. Iterated best responses that are based on uninformative level-0 play lead to the following of the private information (level-1), to the following of the majority...
Persistent link: https://www.econbiz.de/10011490245
This paper experimentally investigates social learning in a two-agent prediction game with both exogenous and endogenous ordering of decisions and a continuous action space. Given that individuals regularly fail to apply rational timing, we refrain from implementing optimal timing of decisions...
Persistent link: https://www.econbiz.de/10013077364
We test whether deviations from Nash equilibrium in rent-seeking contests can be explained by the slow convergence of payoff-based learning. We identify and eliminate two sources of noise that slow down learning. The first source of noise is present because each action is evaluated against a...
Persistent link: https://www.econbiz.de/10012869714