Game-form recognition in dynamic interactions

Abstract

Succeeding at game-form recognition is critical for strategy selection and, ultimately success or failure. Whether people understand the games they participate in is the empirical question addressed in this article. Replicated in 27 different strategic settings with 4,788 subjects, our test shows that between 12% and 65% of subjects fail at game-form recognition. Additionally, in our setup, we find that game-form recognition is more challenging than backward induction. To collect data, we conducted a mobile experiment using Blues and Reds, an app available globally for free on iOS and Android devices.

Keywords: game-form recognition, nite dynamic games, mobile experiment

JEL Classification: C72, C99, D91