Switching Roles in Experiments: Learning in a Signaling Game

Abstract In games of asymmetric information, it can be difficult for subjects to understand the true position of their opponents. Theoretically, they should be able to take the information they are given and reason through their opponent’s options, but in practice this could be quite demanding. A potential solution to this problem is to allow subjects to switch roles, thereby gaining an understanding of the other side of the table. In this paper, I look at the effect of role switching on the learning process in a simple signaling game of pretrial bargaining. My findings are mixed: role switching appears to help Subjects reduce some kinds of mistakes, but it also exacerbates other mistakes.