A Step Ahead? Experienced Play in the p-Beauty Game

27 Pages Posted: 22 Sep 2010

See all articles by Susan Skeath

Susan Skeath

Wellesley College - Department of Economics

Jeffrey A. Livingston

Bentley University - Department of Economics

Date Written: July 20, 2010

Abstract

In the "p-beauty" contest, contestants choose a number between zero and 100 and the winner is the player who selected the number that is closest to some fraction p of the average chosen by the group. The decision process in this game is widely viewed as representative of the decision process in financial markets, because both require the ability to successfully anticipate and react to average opinions faster than the general public. This study examines how players who are experienced with the game behave when competing against opponents who they know have never seen the game before. The results show that experienced players correctly anticipate the choices of inexperienced players and react accordingly.

Suggested Citation

Skeath, Susan and Livingston, Jeffrey A., A Step Ahead? Experienced Play in the p-Beauty Game (July 20, 2010). Available at SSRN: https://ssrn.com/abstract=1680542 or http://dx.doi.org/10.2139/ssrn.1680542

Susan Skeath

Wellesley College - Department of Economics ( email )

106 Central Street
Wellesley, MA 02181
United States
781-283-2180 (Phone)
781-283-2177 (Fax)

Jeffrey A. Livingston (Contact Author)

Bentley University - Department of Economics ( email )

175 Forest Street
Waltham, MA 02452-4705
United States
781-891-2538 (Phone)
781-891-2896 (Fax)

HOME PAGE: http://works.bepress.com/jeffrey_livingston/

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
246
Abstract Views
1,167
Rank
243,042
PlumX Metrics