Abstract:This paper studies learning in strategic environment using experimental data from the Rock-Paper-Scissors game. In a repeated game framework, we explore the response of human subjects to uncertain behavior of strategically sophisticated opponent. We model this opponent as a robot who played a stationary strategy with superimposed noise varying across four experimental treatments. Using experimental data from 85 subjects playing against such a stationary robot for 100 periods, we show that humans can decode the… Show more
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