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...

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...

In experiments of decision-making under risk, structural mixture models allow us to take a menu of theories about decision-making (e.g. Expected Utility Theory, Prospect Theory, and Rank Dependent Expected Utility) to the data, estimating the fraction of people who behave according to each...

One of the original objectives of the (logit) quantal response equilibrium (LQRE) model was to provide a method for structural estimation of behaviour in games, when behaviour deviated from Nash equilibrium predictions. To date, only Chapter 6 of the book on quantal response equilibrium by...

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...

We run an experiment to compare belief formation and learning under compound risk and under ambiguity at the individual level. We estimate a four-type mixture model assuming that subjects may either follow Bayes Rule or behave according to the multiple priors model of Epstein and Schneider...

Bayesian estimates from experimental data can be influenced by highly diffuse or "uninformative" priors. This paper discusses how practitioners can use their own expertise to critique and select a prior that (i) incorporates our knowledge as experts in the field, and (ii) achieves favorable...