The title Experimental Game Theory refers to experiments whose goal
is to learn about general principles of strategic behavior, as opposed to
the performance of specific institutions. Twenty-five years ago it would
have been startling to see ‘‘experimental’’ modifying ‘‘game theory’’ in this
way or to find an entire issue of an economics journal devoted to game
experiments.If this now seems natural, it is a tribute to the increasingly
2 See, however, the 1995 Games and Economic Behavior special issue on experimental game
theory introduced by Ledyard and Palfrey [26]. Twenty-five years ago, the only experiment
that had commanded the attention of the entire profession was Smith’s [41] classic study of
the competitive double-oral-auction market. His experiment revealed—at a time when most
economists thought perfect competition required many traders, with perfect information—that
markets with only a few traders on each side can yield competitive outcomes and that market
outcomes may actually be more competitive when traders are imperfectly informed. The
widespread impact of Smith’s results was probably due largely to their robustness to the
details of individual behavior—details that are the focus of experimental game theory.
empirical orientation of game theory and the researchers who have made
experiments an important tool for the analysis of strategic behavior.3
3 Kagel and Roth [23], Crawford [12, 13], Selten [39], and Camerer [3, 4] provide
complementary surveys of the experimental literature, and Plott [30], Smith [42, 43], and
Roth [34, 35] discuss its methodology.
With hindsight, the emergence of experimental game theory can be
traced to two factors—the need for empirical information about principles
of strategic behavior and the advantages of experiments in providing it.This need was long obscured by the game-theoretic custom of trying to
predict behavior entirely by theory, applying notions of equilibrium and
refinements to the structure of the game.4 This custom admits a role for
4 The custom may reflect the early conception of game theory as a mathematical investigation
of the behavior of idealized ‘‘perfectly rational’’ agents and the view that this would be
fully adequate to predict strategic behavior. Schelling [37] gave an early and influential dissenting
view, which did little to alter the custom among theorists.
empirical knowledge about players’ preferences, feasible decisions, and
information just as in nonstrategic microeconomics, but it precludes any
role for empirical input about the principles that determine how players
respond to a given game.
Excluding such input is comparatively innocuous in nonstrategic settings,
where rationality in the sense of expected-utility maximization often provides
a reasonably reliable guide to behavior once preferences, decisions,
and information have been identified. But it is far from innocuous in strategic
settings, where rationality alone seldom yields definite predictions,
reliable or not, and consensus about how to strengthen it is if anything
more remote than 25 years ago. As a result, most games of interest in economic
applications raise questions about strategic behavior that seem likely
to be adequately resolved only by combining theory and empirical
knowledge.The need for empirical knowledge about principles of strategic behavior
creates a special role for experiments in game theory. The predictions of
game theory—particularly noncooperative game theory, which underlies
most applications—are notoriously sensitive to the details of the structure
of the game, and much of this sensitivity is reflected in observed behavior.
Such details can seldom be precisely observed or adequately controlled in
the field. The laboratory shares some of these problems, but the control
and observation that modern experimental techniques allow often give
experiments a decisive advantage in identifying the relationship between
strategic behavior and the environment.6 In this endeavor, theory and
6 There is nonetheless a history of valuable empirical work using field data from strategic
environments, usually with well-specified, observable structures, as for example in auctions or
centralized labor markets.
experiment play strongly complementary roles, with theory providing a
framework within which to gather and interpret empirical information
about behavior, and experiments indicating which parts of the theory are most useful in predicting behavior, and identifying behavioral parameters
that theory does not reliably determine.
This symposium showcases some of the best recent work in experimental
game theory, work that highlights the power of experimental methods to
elucidate questions central to game theory and illustrates the possibilities of
experimental design. The rest of this introduction describes the papers,
which are broadly grouped by game-theoretic topic.7 Section 2 introduces
7 I make no systematic attempt to explain the methods of experimental game theory, instead
referring interested readers to the surveys and discussions mentioned above and the expositions
in the papers themselves.
the first four papers, which present primarily static analyses of behavior in
extensive-form games: backward induction, social preferences, implementation,
and preplay communication. Section 3 introduces the next three
papers, which present dynamic analyses of learning in normal-form games:
strategic teaching, learning mixed strategies, and analogies. Section 4
introduces the final paper, which considers the possibility of using a
quantal response equilibrium model with risk aversion to explain overbidding
(relative to the risk-neutral Nash equilibrium) in first-price sealed-bid
auctions.