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Persistent link: https://www.econbiz.de/10012240909
A subject brackets two decisions if she "choose[s] an option in each case without full regard to the other." Although in most situations such behavior is unlikely to be optimal, it is well documented in experiments where subjects make decisions in the absence of strategic considerations. This...
Persistent link: https://www.econbiz.de/10012903870
When agents face coordination problems their choices often impose externalities on third parties. We investigate whether such externalities can affect equilibrium selection in a series of one-shot coordination games varying the size and the sign of the externality. We find that third-party...
Persistent link: https://www.econbiz.de/10013075109
This paper develops a framework for estimating Quantal Response Equilibrium models from experimental data using Bayesian techniques. Bayesian techniques offer some advantages over the more commonly-used maximum likelihood approach: (i) the accuracy of the posterior simulation is limited by...
Persistent link: https://www.econbiz.de/10013245678