Strategic Sophistication of Adolescents: Evidence from Experimental Normal-Form Games

41 Pages Posted: 12 Jul 2010

See all articles by Simon Czermak

Simon Czermak

Management Center Innsbruck (MCI)

Francesco Feri

University of London

Daniela Rützler

University of Innsbruck

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods; University of Cologne - Department of Economics

Abstract

We examine the strategic sophistication of adolescents, aged 10 to 17 years, in experimental normal-form games. Besides making choices, subjects have to state their first- and second-order beliefs. We find that choices are more often a best reply to beliefs if any player has a dominant strategy and equilibrium payoffs are not too unequal. Using a mixture model we can estimate for each subject the probability to be any of eight different strategic and non-strategic types. The econometric estimation reveals that older subjects are more likely to eliminate dominated strategies, and that subjects with good math grades are more strategic.

Keywords: strategic thinking, beliefs, experiment, age, adolescents

JEL Classification: C72, C91

Suggested Citation

Czermak, Simon and Feri, Francesco and Rützler, Daniela and Sutter, Matthias, Strategic Sophistication of Adolescents: Evidence from Experimental Normal-Form Games. IZA Discussion Paper No. 5049. Available at SSRN: https://ssrn.com/abstract=1638505

Simon Czermak (Contact Author)

Management Center Innsbruck (MCI) ( email )

Universitaetsstr. 15
Innsbruck, 6020
Austria

Francesco Feri

University of London ( email )

Senate House
Malet Street
London, WC1E 7HU
United Kingdom

Daniela Rützler

University of Innsbruck ( email )

Matthias Sutter

Max Planck Society for the Advancement of the Sciences - Max Planck Institute for Research on Collective Goods ( email )

Kurt-Schumacher-Str. 10
D-53113 Bonn, 53113
Germany

University of Cologne - Department of Economics

Cologne, 50923
Germany

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