Simultaneous decisions in different-sized groups in electricity markets

Abstract

The paper examines behavioral experiments of guessing game for different-sized groups in electricity markets. The subjects simultaneously took decisions, while being part of a group, and as part of a subgroup. The three-factor design (with two blocking factors) shows that subjects choose different numbers for a large group and a subgroup. The numbers in the subgroups are less (and closer to equilibrium) than the numbers in large groups. Subjects make more rational decisions, being in larger groups.

Keywords

• Behavioral experiment
• Blocking factor
• Factorial design
• Guessing game
• Simultaneous decisions