3.3.2. Against Computer

Subjects played against the computer for the second block of the experiment. The computer always chooses a Nash equilibrium action. The concept of equilibrium was explained to the subjects. For example, subjects were told that "a combination of guesses, one for each person, such that each person's guess earns them as many points as possible, given the other person's guess, is called an equilibrium guess." A similar description of equilibrium guess is found in CGC06. Subjects were also given an example of an equilibrium guess following this description. However, they were not specifically taught how to derive an equilibrium guess. The reason for introducing the equilibrium concept was to encourage the subjects to perform as many rounds of iterative best responses as possible. The two guessing games in this part are labeled 17 and 18 in Table 1.
