Chicken or Checkin’? Rational Learning in Repeated Chess Games

29 Pages Posted: 1 Aug 2011

See all articles by Christer Gerdes

Christer Gerdes

Stockholm University - Swedish Institute for Social Research (SOFI)

Patrik Gransmark

Stockholm University - Swedish Institute for Social Research (SOFI)

Michael Rosholm

Aarhus University - Department of Economics and Business Economics; IZA Institute of Labor Economics; Amternes og Kommunernes Forskningsinstitut (AKF)

Abstract

We examine rational learning among expert chess players and how they update their beliefs in repeated games with the same opponent. We present a model that explains how equilibrium play is affected when players change their choice of strategy when receiving additional information from each encounter. We employ a large international panel dataset with controls for risk preferences and playing skills whereby the latter accounts for ability. Although expert chess players are intelligent, productive and equipped with adequate data and specialized computer programs, we find large learning effects. Moreover, as predicted by the model, risk-averse players learn substantially faster.

Keywords: rational learning, risk aversion, beliefs

JEL Classification: C73, D83

Suggested Citation

Gerdes, Christer and Gransmark, Patrik and Rosholm, Michael, Chicken or Checkin’? Rational Learning in Repeated Chess Games. IZA Discussion Paper No. 5862, Available at SSRN: https://ssrn.com/abstract=1899165

Christer Gerdes (Contact Author)

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Patrik Gransmark

Stockholm University - Swedish Institute for Social Research (SOFI) ( email )

Kyrkgatan 43B
SE-106 91 Stockholm
Sweden

Michael Rosholm

Aarhus University - Department of Economics and Business Economics ( email )

Fuglesangs Allé 4
Aarhus V
Denmark
+45 89 42 15 59 (Phone)
+45 86 13 63 34 (Fax)

IZA Institute of Labor Economics

P.O. Box 7240
Bonn, D-53072
Germany

Amternes og Kommunernes Forskningsinstitut (AKF)

Nyropsgade 37
Copenhagen, DK-1602
Denmark

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