Proﬁling Players in Dynamic Games: A Mobile Experiment
28 Pages Posted: 14 Jun 2019
Date Written: June 2, 2019
This article has two distinct objectives. The ﬁrst objective is to explore what mobile technology has to oﬀer for experimental research. To that end, a team of app developers was recruited to create Blues and Reds, a mobile app (Android/iOS) that operates as an experiment designed to study behavior in dynamic games. In less than six months, the app generated a database consisting of 35,826 observations from 6,463 subjects located in 141 countries. The second objective is to design and test a novel method of proﬁling players in dynamic games using data from Blues and Reds that satisﬁes both descriptive and predictive requirements. To describe the reasoning process in dynamic games, a proﬁle consists of two dimensions. The ﬁrst dimension depicts the quality of the subject’s reasoning (savvy vs naive); the second dimension captures the speed of that reasoning (fast vs slow). Predictive power requires that the subject’s proﬁle indicates her likelihood to behave consistently with backward induction. The proposed hypothesis is that this probability is the highest for savvy-fast proﬁle, followed by savvy-slow, then naive-fast, and naive-slow at the end. This hypothesis is successfully conﬁrmed and replicated in 22 various dynamic games.
Keywords: dynamic games, profiling, experimental game theory, mobile experiment
JEL Classification: C72, C73, C99
Suggested Citation: Suggested Citation