ICES Occasional Brown Bag for September 23

Events | September 18, 2013

Join us for an ICES Occasional Brown Bag Lecture featuring Li Hao.

Professor Hao, of the University of Arkansas, will discuss her paper (co-authored with Daniel Houser, Aniket Panjwani, and Joachim Winter) Analysis of Dynamic Games with Biased Beliefs: An Experimental Study. The talk will take place on Monday, September 23rd, from 12:00PM to 1:00PM, in room 5075 of the Metropolitan Building, Arlington campus.

Coffee and dessert will be provided.

If you plan to attend, please RSVP with Stan Tsirulnikov.

Please visit the Brown Bag Schedule to learn more about upcoming brown bags.

Abstract

We conduct a laboratory experiment to evaluate the econometric procedure for estimating dynamic games proposed by Aguirregabiria and Magesan’s (2012, “AM” hereafter). AM’s procedure is valuable because it relaxes the equilibrium assumption that players’ beliefs accurately represent the actual decisions of their opponents. The advantage of our approach over conventional Monte Carlo studies is that our data are generated by human participants rather than simulated agents, without losing the availability of “known” parameters for evaluation purposes. We (i) discover the conditions under which AM’s procedure provides reliable inferences with respect to the structural parameters, and (ii) draw inferences about the nature of human players’ beliefs in these environments.

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