Naivete and Sophistication in Initial and Repeated Play in Games

41 Pages Posted: 15 Nov 2019

See all articles by Bernardo Garcia-Pola

Bernardo Garcia-Pola

University of the Basque Country

Nagore Iriberri

University of the Basque Country

Date Written: October 2019

Abstract

Naive, non-equilibrium, behavioral rules, compared to more sophisticated equilibrium theory, are often better in describing individuals' initial play in games. Additionally, in repeated play in games, when individuals have the opportunity to learn about their opponents' past behavior, learning models of different sophistication levels are successful in explaining how individuals modify their behavior in response to feedback. How do subjects following different behavioral rules in initial play modify their behavior after learning about past behavior? This study links both initial and repeated play in games, analyzing elicited behavior in 3x3 normal-form games using a within-subject laboratory design. We classify individuals into different behavioral rules in both initial and repeated play and test whether and/or how naivete and sophistication in initial play correlates with naivete and sophistication in repeated play. We find no evidence for a correlation between naivete and sophistication in initial and repeated play.

Keywords: adaptive and sophisticated learning, initial play, level-k thinking, mixture-of-types estimation, Naivete, repeated play, Sophistication

JEL Classification: C70, C91, C92

Suggested Citation

Garcia-Pola, Bernardo and Iriberri, Nagore, Naivete and Sophistication in Initial and Repeated Play in Games (October 2019). Available at SSRN: https://ssrn.com/abstract=3486237

Bernardo Garcia-Pola (Contact Author)

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

Nagore Iriberri

University of the Basque Country ( email )

Barrio Sarriena s/n
Leioa, Bizkaia 48940
Spain

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