An empirical model of strategic choice with an application to coordinationgames

Behavior observed in many experimental games is inconsistent with the joint hypotheses of rational play and complete information of the game. I assume that the experimental session is a Bayesian game of incomplete information and that the observed actions are supported by an equilibrium of this game . This structure permits estimation, within the theoretical model, of the d istribution of player characteristics which determines the equilibrium outc omes of the game. The model developed for the coordination games allows a t ype that follows a myopic learning rule as well as strategic types with eit her selfish or altruistic preferences. Journal of Economic Literature Class ification Numbers: C72, C92. (C) 1999 Academic Press.