Abstract

http://ssrn.com/abstract=512242
 
 

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The Alpha-Beauty Contest: Choosing Numbers, Thinking Intervals


Enrico G. De Giorgi


University of St. Gallen - SEPS: Economics and Political Sciences

Stefan Reimann


University of Zurich - Department of Economics

June 8, 2007


Abstract:     
We present a model for the alpha-beauty contest that explains common patterns in experimental data of one-shot and iterative games. The approach is based on two basic assumptions. First, players iteratively update their recent guesses. Second, players estimate intervals rather than exact numbers to cope with incomplete knowledge of other players' choices. Under these assumptions we extend the cognitive hierarchy model of Camerer, Ho, and Chong (2003). The extended model is estimated on experimental data from a newspaper experiment.

Number of Pages in PDF File: 35

Keywords: Experiments, alpha-beauty contest, beliefs

JEL Classification: C91, D84

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Date posted: March 4, 2004  

Suggested Citation

De Giorgi, Enrico G. and Reimann, Stefan, The Alpha-Beauty Contest: Choosing Numbers, Thinking Intervals (June 8, 2007). Available at SSRN: http://ssrn.com/abstract=512242 or http://dx.doi.org/10.2139/ssrn.512242

Contact Information

Enrico G. De Giorgi (Contact Author)
University of Saint Gallen - SEPS: Economics and Political Sciences ( email )
Institute of Mathematics and Statistics
Bodanstrasse 6
CH-9000 St. Gallen
Switzerland
+41712242430 (Phone)
Stefan Reimann
University of Zurich - Department of Economics ( email )
Zuerich, 8006
Switzerland
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References:  13

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