Game 1 The P-beauty Contest Game Theory Game 1 The P-beauty Contest
P-Beauty Contests
Levels of Rationality
Class Strategies
Levels of Rationality 2-3 Penn (Wharton) Students Cal-Tech’s Board of Trustees US High School Students
Levels of Rationality 2-3 Penn (Wharton) Students Cal-Tech’s Board of Trustees US High School Students UConn
Levels of Rationality 2-3 3 Penn (Wharton) Students Cal-Tech’s Board of Trustees US High School Students UConn Cal-Tech undergrads
Results Average Number: 39.9 ¾ of Average: 29.9
Closest Alex (29) Tyler (31) Top ten between 25 and 39
Furthest One person picked 77
Furthest Adam picked 75 Connor picked 75
I’m Rational (But the Rest of You Aren’t) Picked 0 Xue Lizzie John
Predictability Winning number: 29.9
Predictability Winning number: 29.9 Winning number 2018: 29.8 Winning number 2016: 29.1 Winning number 2015: 29.5 Winning number 2014: 29.8 Winning number 2013: 30.0
Summary Common knowledge is bunk Bounded rationality is not Must understand how far the reasoning of other players will go People generally think two to three steps ahead (The rule of three) Need to stay one step ahead Don’t be too clever