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| Andrea Morone and Piergiuseppe Morone |
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| ''Boundary and interior equilibria: what drives convergence in a ‘beauty contest'?'' |
| ( 2010, Vol. 30 No.3 ) |
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| We present an experimental game in the p-beauty framework. Building on the definitions of boundary and interior equilibria, we distinguish between ‘speed of convergence towards the game-theoretic equilibrium' and ‘deviations of the guesses from the game-theoretic equilibrium'. In contrast to earlier findings (Güth et al., 2002), we show that (i) interior equilibria initially produce smaller deviation of the guesses from the game-theoretic equilibrium compared to boundary equilibria; (ii) interior and boundary equilibria do not differ in the timeframe needed for convergence; (iii) the speed of convergence is higher in the boundary equilibrium. |
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| Keywords: Guessing game, p-beauty contest, individual behaviour |
JEL: D9 - Intertemporal Choice and Growth: General
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| Manuscript Received : May 04 2010 | | Manuscript Accepted : Aug 12 2010 |
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