INDIVIDUAL STRATEGIES IN A MARKET ENTRY GAME

Quantitatively trained Ph.D, students participated in three replicatio ns of a 20-trial market entry game in which each agent has two pure st rategies-to ''enter the market'' or ''stay out of the market''-and the individual payoff depends on the size of the set of active agents ent ering the market. With experience subjects adhered more strictly to pu re strategies, which although markedly different from one to the other combined to form distributions supporting a Nash equilibrium solution to the game.