PhD Lunch Seminars Amsterdam

Sándor Sóvágó
Tuesday, 1 November 2016

We provide direct field evidence of dominated strategy play in a strategically simple environment. A large fraction of applicants in the Hungarian college admission process forgo the right for a tuition waiver, that is worth thousands of Euros, even though this behavior has no benefit. In many cases, applicants would have received the tuition waiver had they asked for it. We show that mistakes are negatively correlated with ability, and caused by increased competition, corroborating the laboratory evidence of Basteck and Matovani (2016) and Hassidim et al. (2016). Our findings complicate the interpretation of numerous empirical studies.