ICES Brown Bag for November 20

Events, Seminars | November 8, 2019

Join us for the ICES Brown Bag Lecture of the Fall 2019 semester, featuring Arthur Dolgopolov.

Mr. Dolgopolov, of George Mason University, will discuss his paper Reconstructing Strategies in Dynamic Games  (Abstract). The talk will take place on Wednesday, November 20th, from 12:00 to 1:00pm, in room 5075 of the Vernon Smith Hall, Arlington campus.

Coffee and dessert will be provided.

Please visit the Brown Bag Schedule to learn more about the Brown Bag series.

Abstract

The essential problem in the empirical analysis of the repeated games is to know what strategies are used by the players. We propose a simple algorithm to reconstruct strategies from the observed sequence of play. The algorithm accounts for the possibility of measurement and decision making errors. It stays agnostic about equilibrium restrictions. We apply the algorithm to both experimental and observational data. Using the experimental data, we provide conclusive evidence that players use strategies of memory no more than one period. Using the observational data, we support the hypothesis that Australian gas stations learn to tacitly collude for weekly price cycles using the day of the week as a coordination device.

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