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Testing Game Theory in the Field: Swedish LUPI Lottery Games

Östling, Robert and Wang, Joseph Tao-yi and Chou, Eileen Y. and Camerer, Colin F. (2011) Testing Game Theory in the Field: Swedish LUPI Lottery Games. American Economic Journal: Microeconomics, 3 (3). pp. 1-33. ISSN 1945-7669. doi:10.1257/mic.3.3.1.

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Game theory is usually difficult to test in the field because predictions typically depend sensitively on features that are not controlled or observed. We conduct one such test using both laboratory and field data from the Swedish lowest unique positive integer (LUPI) game. In this game, players pick positive integers and whoever chooses the lowest unique number wins. Equilibrium predictions are derived assuming Poisson distributed population uncertainty. The field and lab data show similar patterns. Despite various deviations from equilibrium, there is a surprising degree of convergence toward equilibrium. Some deviations can be rationalized by a cognitive hierarchy model.

Item Type:Article
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Camerer, Colin F.0000-0003-4049-1871
Additional Information:American Economic Journal: Microeconomics 3 (August 2011): 1–33
Issue or Number:3
Classification Code:JEL classification: C70, C93, D44, H27
Record Number:CaltechAUTHORS:20111109-162429909
Persistent URL:
Official Citation:Östling, Robert, Joseph Tao-yi Wang, Eileen Y. Chou, and Colin F. Camerer. 2011. "Testing Game Theory in the Field: Swedish LUPI Lottery Games." American Economic Journal: Microeconomics, 3(3): 1–33.
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:27718
Deposited By: Katherine Johnson
Deposited On:10 Nov 2011 00:35
Last Modified:09 Nov 2021 16:51

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