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SUMMARY:Nash and the degree heuristic in network games: An online experime
 nt - Dr. Edoardo Gallo\, Faculty of Economics\, University of Cambridge
DTSTART:20131105T163000Z
DTEND:20131105T173000Z
UID:TALK47146@talks.cam.ac.uk
CONTACT:Luning Sun
DESCRIPTION:We investigate experimentally a game of strategic complements 
 on a network: the game has a unique Nash equilibrium where the player's ef
 fort depends on its Bonacich centrality. The experiment tests the predicti
 on on 4 networks where subjects can choose any integer effort in the [0\,1
 00] range\, and the equilibrium is interior to this range for every node i
 n all networks. In two networks with 15 and 21 nodes\, subjects' play conv
 erges to the Nash equilibrium on almost every node. We provide evidence th
 at subjects play according to a degree heuristic: their effort is increasi
 ng in the degree of the node they are assigned to. This heuristic is mostl
 y effective at converging to Nash\, and it explains the observed systemati
 c deviations from Nash. In two simpler networks of 9 nodes\, the circle an
 d the wheel\, subjects are able to coordinate on an interior collaborative
  norm that gives higher payoffs than Nash. Methodologically\, the paper sh
 ows the capabilities of UbiquityLab: a novel platform to perform online ex
 periments that involve live interactions among a large number of participa
 nts.
LOCATION:Seminar Room\, Department of Psychology\, Downing Site\, Cambridg
 e
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