American Economic Journal:
Microeconomics
ISSN 1945-7669 (Print) | ISSN 1945-7685 (Online)
Testing Game Theory in the Field: Swedish LUPI Lottery Games
American Economic Journal: Microeconomics
vol. 3,
no. 3, August 2011
(pp. 1–33)
Abstract
Game theory is usually difficult to test in the field because predictions typically depend sensitively on features that are not controlled or observed. We conduct one such test using both laboratory and field data from the Swedish lowest unique positive integer (LUPI) game. In this game, players pick positive integers and whoever chooses the lowest unique number wins. Equilibrium predictions are derived assuming Poisson distributed population uncertainty. The field and lab data show similar patterns. Despite various deviations from equilibrium, there is a surprising degree of convergence toward equilibrium. Some deviations can be rationalized by a cognitive hierarchy model. (JEL C70, C93, D44, H27)Citation
Östling, Robert, Joseph Tao-yi Wang, Eileen Y. Chou, and Colin F. Camerer. 2011. "Testing Game Theory in the Field: Swedish LUPI Lottery Games." American Economic Journal: Microeconomics, 3 (3): 1–33. DOI: 10.1257/mic.3.3.1Additional Materials
JEL Classification
- C70 Game Theory and Bargaining Theory: General
- C93 Field Experiments
- D44 Auctions
- H27 Taxation, Subsidies, and Revenues: Other Sources of Revenue
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