Cookies?
Library Header Image
LSE Research Online LSE Library Services

Learning in a black box

Nax, Heinrich H., Burton-Chellew, Maxwell N., West, Stuart A. and Young, H. Peyton (2016) Learning in a black box. Journal of Economic Behavior and Organization, 127. pp. 1-15. ISSN 0167-2681

[img]
Preview
PDF - Published Version
Available under License Creative Commons Attribution Non-commercial No Derivatives.

Download (933kB) | Preview
Identification Number: 10.1016/j.jebo.2016.04.006

Abstract

We study behavior in repeated interactions when agents have no information about the structure of the underlying game and they cannot observe other agents’ actions or payoffs. Theory shows that even when players have no such information, there are simple payoff-based learning rules that lead to Nash equilibrium in many types of games. A key feature of these rules is that subjects search differently depending on whether their payoffs increase, stay constant or decrease. This paper analyzes learning behavior in a laboratory setting and finds strong confirmation for these asymmetric search behaviors in the context of voluntary contribution games. By varying the amount of information we show that these behaviors are also present even when subjects have full information about the game.

Item Type: Article
Official URL: http://www.sciencedirect.com/science/journal/01672...
Additional Information: © 2016 The Authors © CC BY NC ND 4.0
Divisions: Mathematics
Subjects: H Social Sciences > HB Economic Theory
Q Science > QA Mathematics
Sets: Departments > Mathematics
Date Deposited: 21 Dec 2016 15:01
Last Modified: 20 Nov 2019 11:49
Projects: N00014-09-1-0751, 324247, FA9550-09-1-053
Funders: Office of Naval Research, European Research Council, Air Force Office of Scientific Research
URI: http://eprints.lse.ac.uk/id/eprint/68714

Actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics