Strategy similarity and coordination

Rajiv Sarin*, Farshid Vahid

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    13 Citations (Scopus)

    Abstract

    In the payoff assessment model of choice (Sarin and Vahid, 1999), only the assessment of the chosen strategy is updated. We extend that model to allow the agent to also update the assessments of strategies that the agent thinks are similar to the chosen strategy. We use this model to explain observed behaviour in a recent experiment. Statistical tests cannot distinguish between the payoff distributions generated by the model and the observed payoff distributions in almost every period.

    Original languageEnglish
    Pages (from-to)506-527
    Number of pages22
    JournalEconomic Journal
    Volume114
    Issue number497
    DOIs
    Publication statusPublished - Jul 2004

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