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Learning and decision costs in one-person games

✍ Scribed by Charles Romeo; Barry Sopher

Publisher: John Wiley and Sons
Year: 1999
Tongue: English
Weight: 227 KB
Volume: 14
Category: Article
ISSN: 0883-7252
DOI: 10.1002/(sici)1099-1255(199907/08)14:4<335::aid-jae537>3.0.co;2-d

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✦ Synopsis

This paper reports the results of a two-part data analysis of learning in a repeated costly decision experiment. In the ®rst part we test payo dominance under the hypothesis of expected payo maximization. We utilize a dynamic probability distribution over decisions for each player, characterizing what each player has learned about the payo function by the moments from these distributions. In the second part, we test the hypothesis of expected payo maximization for players in each treatment group. Expected payo maximization is supported but payo dominance is not.

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