Rationalizability and Nash equilibria in guessing games

Games and Economic Behavior

(with Christian Seel)

Journal publication / Working paper

Abstract.

Games in which players aim to guess a fraction or multiple \(p\) of the average guess are known as guessing games or \(p\)-beauty contests. In this note, we derive a full characterization of the set of rationalizable strategies and the set of pure strategy Nash equilibria for such games as a function of the parameter \(p\), the number of players and the (discrete) set of available guesses to each player.