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Andrea Morone and Piergiuseppe Morone
''Boundary and interior equilibria: what drives convergence in a ‘beauty contest'?''
( 2010, Vol. 30 No.3 )
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.
Keywords: Guessing game, p-beauty contest, individual behaviour
JEL: D9 - Intertemporal Choice and Growth: General
Manuscript Received : May 04 2010 Manuscript Accepted : Aug 12 2010

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