| Article ID | Journal | Published Year | Pages | File Type |
|---|---|---|---|---|
| 5072907 | Games and Economic Behavior | 2008 | 7 Pages |
Abstract
We introduce a two-person beauty contest game with a unique Nash equilibrium that is identical to the game with many players. However, iterative reasoning is unnecessary in the two-person game as choosing zero is a weakly dominant strategy. Despite this “easier” solution concept, we find that a large majority of players do not choose zero. This is the case even with a sophisticated subject pool.
Related Topics
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Economics, Econometrics and Finance
Economics and Econometrics
Authors
Brit Grosskopf, Rosemarie Nagel,