.ISSN (e) 1759-7331
(print) 1759-7323
Quantitative Economics
An open-access journal in quantitative economics
Journal of the
Econometric Society
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Quantitative Economics, Volume 9, Issue 1 (March 2018)

An empirical model of non‐equilibrium behavior in games

Brendan Kline

Abstract



This paper studies the identification and estimation of the decision rules that individuals use to determine their actions in games, based on a structural econometric model of non‐equilibrium behavior in games. The model is based primarily on various notions of limited strategic reasoning, allowing multiple modes of strategic reasoning and heterogeneity in strategic reasoning across individuals and within individuals. The paper proposes the model and provides sufficient conditions for point identification of the model. Then the model is estimated on data from an experiment involving two‐player guessing games. The application illustrates the empirical relevance of the main features of the model.

Games heterogeneity identification non‐equilibrium strategic reasoning C1 C57 C72

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