Dec. 7 (13:30-14:30) room C.714
Philipp Külpmann (Corvinus)
Title: Purified Randomness? Testing Harsanyi’s Idea in the Lab (with Wieland Müller and Alexander K. Wagner)
Abstract: We investigate Harsanyi’s purification idea for mixed-strategy play in a simple (two-player normal-form) Bayesian game with two-sided private payoff perturbations. Using data from a laboratory experiment, we test if, as suggested by Harsanyi, subjects play a pure strategy in the perturbed games. Furthermore, we are the first who explicitly test cut-off strategies in Bayesian games. To test if subjects use cut-off strategies, we develop and use a new statistical test of threshold behavior.