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Information Processing, Learning, and Analogy-Based Expectations: An Experiment

Journal article published in 2006 by Ste¤en Huck, Philippe Jehiel, Tom Rutter
This paper is available in a repository.
This paper is available in a repository.

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Preprint: policy unknown
Question mark in circle
Postprint: policy unknown
Question mark in circle
Published version: policy unknown

Abstract

Mental content comes to mind more or less easily depending on its 'accessibility'(Higgins 1996). We consider how learning is a¤ected by the framing of feedback information about opponents' play when subjects are engaged in several interactions. Speci…cally, we examine an experimental setting where the feedback's content is identical across treatments, but the presentation di¤ers, inducing di¤erent degrees of accessibility. Behavior di¤ers strongly between treatments and we show that the observed di¤erences can be organized by applying the concept of analogy-based expectation equilibrium (Jehiel 2005). Additional treatments were designed to examine behavior when feedback mirrors the theoretically assumed mental representations, and behavior in these treatments con…rms the analogy-based expectations hypothesis. More generally, our results sug-gest the need to incorporate framing considerations into equilibrium analysis.