Document Type
Article
Publication Date
7-7-2012
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, and allows switching between these states. 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 non-stationary dynamics. We also explore the ability of the model to forecast action choice.
Recommended Citation
Shachat, Jason; Swarthout, Todd; and Wei, Lijia, "A hidden Markov model for the detection of pure and
mixed strategy play in games" (2012). ExCEN Working Papers. 59.
https://scholarworks.gsu.edu/excen_workingpapers/59
Comments
To learn more about the Andrew Young School of Policy Studies and ExCEN Working Papers Series, visit https://aysps.gsu.edu/ and http://excen.gsu.edu/center/.