Heterogeneous Trembles and Model Selection in the Strategy Frequency Estimation Method

The strategy frequency estimation method (Dal B´o and Fr´echette, 2011) allows us to estimate the fraction of subjects playing each of a list of strategies in an infinitely repeated game. Currently, this method assumes that subjects tremble with the same probability. This paper extends this method so that subjects' trembles can be heterogeneous, and describe how to simulate the posterior distribution of the parameters in this new model. Out of thirty ex ante plausible specifications, the model that is most likely to have generated the data uses the six strategies describel in Dal B´o and Fr´echette (2018), and allows the distribution of trembles to vary by treatment