Imprecise Preferences and Beliefs in Simple Games with co-authors G Loomes, D Navarro-Martinez and David Butler

Abstract The individual decision-making literature has provided extensive evidence that preferences are often imprecise. We extend the study of imprecision to the preferences and beliefs of the players of simple simultaneous games. We show that the vast majority of participants report varying degrees of imprecision in their preferences and beliefs. This imprecision is systematically related to choices and beliefs. Preferences are more imprecise when choices are more variable, and beliefs are more imprecise when they are less extreme. The likelihood of players choosing strategies that constitute best responses to their stated beliefs is higher for less imprecise preferences and beliefs. [99 words]

Keywords: preference imprecision, belief imprecision, confidence, experimental games, best response.

JEL classification: C92, D91.