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This paper considers a global game with ambiguity-averse players, where the variance of noise terms in private signals may be unknown, and it presents a laboratory experiment to test comparative statics results with respect to information quality. Suppose that one of the actions is a safe action...
Persistent link: https://www.econbiz.de/10013143779
Recent experimental evidence suggests that noisy behavior correlates strongly with cognitive ability. This puts previous studies that found a negative relation between cognitive ability and risk aversion into perspective and in particular raises the question of how to achieve robust inference in...
Persistent link: https://www.econbiz.de/10012910413
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Recent experimental evidence suggests that noisy behavior correlates strongly with personal characteristics. Since decision noise leads to bias in most elicitation tasks, there is a risk of falsely interpreting noise-driven relationships as preference driven. This puts previous studies that...
Persistent link: https://www.econbiz.de/10012292419