Predicting one Shot Play in 2x2 Games Using Beliefs Based on Minimax Regret

We present a simple procedure that selects the strategies most likely to be played by inexperienced agents who interact in one shot 2x2 matching pennies games. As a first step we axiomatically describe playersÂ’ beliefs. We find the minimax regret criterion to be the simplest functional form that satisfies all the axioms. Then we hypothesize players act as if they were best responding to the belief their opponent plays accordino to minimax regret. When compared with existing experimental evidences about one shot matching pennies games, the procedure correctly indicates the choices of around 80% of the players. Applications to other classes of games are also explored.


Issue Date:
2006
Publication Type:
Working or Discussion Paper
Record Identifier:
http://ageconsearch.umn.edu/record/12182
PURL Identifier:
http://purl.umn.edu/12182
Total Pages:
36
Series Statement:
ETA Nota di Lavoro 31.2006




 Record created 2017-04-01, last modified 2018-01-22

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