Cognition and Behavior in Two-Person Guessing Games: An Experimental Study

Positive expectations feedback experiments and number guessing games as models of financial markets

“…See Keynes (1936), page 156. 2 See for example, Biais and Bossaerts (1998), Ho et al (1998), Camerer et al (2004) and Costa-Gomes and Crawford (2006). An alternative financial market interpretation of the guessing game is that it models the problem of leaving a market just before prices start going down, see Duffy and Nagel (1997) and of players, and about the distribution of the higher order beliefs about rationality in the population.…”

Depth of Reasoning and Higher Order Beliefs

“…The main result of this paper, Theorem 3, is that in the email game there exists a 2 See Nagel (1995); Stahl andWilson (1994, 1995); Ho, Camerer, and Weigelt (1998); Costa-Gomes, Crawford, and Broseta (2001); Camerer (2003) ;Camerer, Ho, and Chong (2004); Costa-Gomes and Crawford (2006); Crawford and Iriberri (2007a,b); Crawford, Gneezy, and Rottenstreich (2008); Crawford, Kugler, Neeman, and Pauzner (2009) ;Healy, Georganas, and Weber (2010). finite number of messages such that coordination is possible among all "cognitive types," no matter how high their bound, provided that they receive at least that many messages.…”

Measuring Attention and Strategic Behavior in Games with Private Information

“…It also scales up cheaply because it can be used on many computers at the same time. 16 There were five sessions in SSEL at Caltech and CASSEL at UCLA. All interactions between subjects were computerized, using a Mousetracking extension of the open source software package 'Multistage Games' developed at Caltech.…”

“…It also ensures that an unusually high time spent in a box reflects a long fixation and not to the subject having left the mouse in that position. 16 Cheap scaling-up is a substantial advantage for studying multi-person games and markets compared to single-subject eye-tracking using Tobii or Mobile eyelink camera-based systems, which cost about $30,000 each.…”

“…Johnson et al, 2002). Information acquisition measures were then used to study forward induction (Johnson and Camerer, 2004), level-k models in matrix games (Costa-Gomes et al, 2001), two-person "beauty contest" games designed to have good type identification (Costa-Gomes and Crawford, 2006), learning in normal-form games (Knoepfle et al, (in press)) and sender-receiver games with strategic information transmission (Wang et al, in press). 7 Crawford (2008) summarizes these findings and the methodological value of information acquisition measures.…”