Abstract
Arad and Rubinstein (2012, AER) proposed the 11-20 money request game as an alternative to the P beauty contest game for measuring the depth of thinking. In this paper, we find that choices in the 11-20 game are confounded with risk aversion; hence, the depth of thinking measured is confounded with risk aversion. We also theoretically show that risk aversion will induce players to avoid choosing low numbers in the game. Further, we show that choices in the P beauty contest game are not correlated with risk aversion.
Highlights
A Service of zbwProvided in Cooperation with: MDPI – Multidisciplinary Digital Publishing Institute, Basel
Game theory models often make assumptions about the rationality of decision makers.One common form of rationality assumed is that decision makers have the ability to perform strategic reasoning such as iterative reasoning
Arad and Rubinstein (2012) [3] found that the choices in the 11–20 game cannot be explained by a mixed strategy Nash equilibrium
Summary
Provided in Cooperation with: MDPI – Multidisciplinary Digital Publishing Institute, Basel. Suggested Citation: Li, King King; Rong, Kang (2018) : Choices in the 11-20 game: The role of risk aversion, Games, ISSN 2073-4336, MDPI, Basel, Vol 9, Iss. 3, pp. Standard-Nutzungsbedingungen: Terms of use: Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen. Documents in EconStor may be saved and copied for your personal and scholarly purposes. You are not to copy documents for public or commercial purposes, to exhibit the documents publicly, to make them publicly available on the internet, or to distribute or otherwise use the documents in public. Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte.
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