DUOPOLY STRATEGIES PROGRAMMED BY EXPERIENCED PLAYERS

The strategy method asks experienced subjects to program strategies fo r a game. This paper reports on an application to a 20-period supergam e of an asymmetric Cournot duopoly. The final strategies after three p rogramming rounds show a typical structure. Typically, no expectations are formed and nothing is optimized. Instead of this, fairness criter ia are used to determine cooperative goals, called ''ideal points.'' T he subjects try to achieve cooperation by a ''measure-for-measure poli cy,'' which reciprocates movements towards and away from the ideal poi nt by similar movements. A strategy tends to be more successful the mo re typical it is.