Can market selection reduce anomalous behaviour in games?

B-Tier
Journal: European Economic Review
Year: 2022
Volume: 141
Issue: C

Authors (2)

Choo, Lawrence (University of Macau) Zhou, Xiaoyu (not in RePEc)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

We use an experiment to study whether market selection can reduce anomalous behaviour in games. In different treatments, we employ two alternative mechanisms, the random mechanism and the auction mechanism, to allocate the participation rights to the red hat puzzle game, a well-known logical reasoning problem. Compared to the random mechanism, the auction mechanism significantly reduces deviations from the equilibrium play in the red hat puzzle game. Our findings show that under carefully designed incentives, market competition can indeed reduce anomalous behaviour in games.

Technical Details

RePEc Handle
repec:eee:eecrev:v:141:y:2022:i:c:s0014292121002464
Journal Field
General
Author Count
2
Added to Database
2026-01-25