Strategy similarity and coordination

Rajiv Sarin, Farshid Vahid

Research output: Contribution to journalArticleResearchpeer-review

12 Citations (Scopus)

Abstract

In the payoff assessment model of choice (Sarin and Vahid, 1999), only the assessment of the chosen strategy is updated. We extend that model to allow the agent to also update the assessments of strategies that the agent thinks are similar to the chosen strategy. We use this model to explain observed behaviour in a recent experiment. Statistical tests cannot distinguish between the payoff distributions generated by the model and the observed payoff distributions in almost every period.

Original languageEnglish
Pages (from-to)506-527
Number of pages22
JournalThe Economic Journal
Volume114
Issue number497
DOIs
Publication statusPublished - 1 Jul 2004
Externally publishedYes

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