A HIDDEN MARKOV MODEL FOR THE DETECTION OF PURE AND MIXED STRATEGY PLAY IN GAMES

B-Tier
Journal: Econometric Theory
Year: 2015
Volume: 31
Issue: 4
Pages: 729-752

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a statistical model to assess whether individuals strategically use mixed strategies in repeated games. We formulate a hidden Markov model in which the latent state space contains both pure and mixed strategies. We apply the model to data from an experiment in which human subjects repeatedly play a normal form game against a computer that always follows its part of the unique mixed strategy Nash equilibrium profile. Estimated results show significant mixed strategy play and nonstationary dynamics. We also explore the ability of the model to forecast action choice.

Technical Details

RePEc Handle
repec:cup:etheor:v:31:y:2015:i:04:p:729-752_00
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-29