Convergence: an experimental study of teaching and learning in repeated games

K. Hyndman*, E. Ozbay, A. Schotter, W. Ehrblatt

*Corresponding author for this work

Research output: Contribution to journalArticleAcademicpeer-review

Abstract

Nash equilibrium can be interpreted as a steady state where players hold correct beliefs about the other players behavior and act rationally. We experimentally examine the process that leads to this steady state. Our results indicate that some players emerge as teachersthose subjects who, by their actions, try to influence the beliefs of their opponent and lead the way to a more favorable outcomeand that the presence of teachers appears to facilitate convergence to Nash equilibrium. In addition to our experiments, we examine games, with different properties, from other experiments and show that teaching plays an important role in these games. We also report results from treatments in which teaching is made more difficult. In these treatments, convergence rates go down and any convergence that does occur is delayed.
Original languageEnglish
Pages (from-to)573-604
Number of pages32
JournalJournal of the European Economic Association
Volume10
Issue number3
DOIs
Publication statusPublished - 1 Jan 2012

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