MODELING AND TESTING FOR HETEROGENEITY IN OBSERVED STRATEGIC BEHAVIOR

摘要

Experimental data have consistently shown diversity in beliefs as well as in actions among experimental subjects. This paper presents and compares alternative behavioral econometric models for the characteriza- tion of player heterogeneity, both between and within subpopulations of players. In particular, two econometric models of diversity within sub- populations of players are investigated, one using a model of computa- tional errors and the other allowing for diversity in prior beliefs around a modal prior for the subpopulation.