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The empirical implications of rank in Bimatrix games

Published: 16 June 2013 Publication History

Abstract

We study the structural complexity of bimatrix games, formalized via rank, from an empirical perspective. We consider a setting where we have data on player behavior in diverse strategic situations, but where we do not observe the relevant payoff functions. We prove that high complexity (high rank) has empirical consequences when arbitrary data is considered. Additionally, we prove that, in more restrictive classes of data (termed laminar), any observation is rationalizable using a low-rank game: specifically a zero-sum game. Hence complexity as a structural property of a game is not always testable. Finally, we prove a general result connecting the structure of the feasible data sets with the highest rank that may be needed to rationalize a set of observations.

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  1. The empirical implications of rank in Bimatrix games

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    cover image ACM Conferences
    EC '13: Proceedings of the fourteenth ACM conference on Electronic commerce
    June 2013
    924 pages
    ISBN:9781450319621
    DOI:10.1145/2492002
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    Published: 16 June 2013

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    Author Tags

    1. game theory
    2. matrix rank
    3. nash equilibrium
    4. revealed preference

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    EC '13: ACM Conference on Electronic Commerce
    June 16 - 20, 2013
    Pennsylvania, Philadelphia, USA

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    EC '13 Paper Acceptance Rate 72 of 223 submissions, 32%;
    Overall Acceptance Rate 664 of 2,389 submissions, 28%

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