We use an experiment to study whether market competition can reduce anomalous behaviour in games. In different treatments, we employ two alternative mechanisms, the random mechanism and the auction mechanism, to allocate the participation rights to the red hat puzzle game, a well-known logical...

In this paper, we seek to determine if auctions can be used to select players according to their level-k types. To do so, we embed auctions into the p- beauty contest game. We find that by using different designs, we can get the auction winners to be either the lower level-k types or the higher...