Laboratory Analysis of the Social and Psychophysiological Aspects of the Behaviour of Participants in the Lemons Market Game

• Published in: Advances in Optimization and Applications Vol. 1514; pp. 246 - 257
• Main Authors: Menshikova, Olga, Sedush, Anna, Polyudova, Daria, Yaminov, Rinat, Menshikov, Ivan
• Format: Book Chapter
• Language: English
• Published: Switzerland Springer International Publishing AG 2021; Springer International Publishing
• Series: Communications in Computer and Information Science
• Subjects: Experimental Economics; Game theory; Laboratory experiments; Lemon market game; Sandra Bem test
• ISBN: 9783030927103; 3030927105
• ISSN: 1865-0929; 1865-0937
• DOI: 10.1007/978-3-030-92711-0_17

The pair game “Market of Lemons” belongs to the class of signal games. We are talking about the sale of used cars, the quality of which is known only to the seller, who chooses at what price, high or low, to sell the car to the buyer. The buyer can buy a car at the offered price, or he can refuse. The article examines three options for choosing roles and partners and two options for the likelihood of ‘bad’ cars. These games explore the existence of concealment, revealing, and hybrid perfect Bayesian equilibrium. It is proved that at the level of aggregated behaviour of participants, the experimental results are in good agreement with the concept of Quantal Response Equilibrium (QRE) in the case when random partners meet in each round. To explain the diversity in human behaviour, the psychological Sandra Bem test was used, which allows you to determine the psychological gender of a person. The participants were divided into four groups based on their biological and psychological gender. There was a significant difference in the behaviour of the representatives of these four groups.