psychology.games

Hall I · Formal Games & Decision Structures

Keynesian beauty contest

Station · Playable

You play against a recorded historical crowd — the first-round guesses from a published 1990s experiment — not against live players. Nothing you enter leaves this browser tab.

Everyone picks a number from 0 to 100. The winner is whoever lands closest to 2/3 of the average of all guesses. Your crowd here is a recorded one — real first-round guesses from a published experiment, disclosed below — so the average is already set. What would you have guessed?

The experience

Pick a number from 0 to 100. Everyone else does the same, and the winner is whoever lands closest to two-thirds of the average of all guesses. That is the whole game — one number, one fully disclosed rule. In the station above you play against a recorded crowd: the first-round guesses from the original published classroom experiment, so your number is scored against what real first-time players actually did. One thing is worth knowing before you commit: hardly anyone plays the theoretically perfect move on first encounter. In Nagel's classic 1995 experiment the average first-round guess in the two-thirds game was 36.73 and the median 33, not a single player chose 0, and almost half of all choices fell in the neighbourhoods of 33 and 22 — exactly where one and two rounds of thinking about everyone else would land you.Convergent / replicated Whatever number is forming in your head right now, somebody in that classroom almost certainly wrote it down.

What is happening

Every guess in this game is a theory about other people. Guessing 50 treats the crowd as noise. Guessing 33 assumes a crowd of 50-guessers. Guessing 22 assumes a crowd that has already thought of 33 — and the ladder keeps going, because no guess above about 67 can ever be a best reply: even if every other player picked 100, two-thirds of the average would sit near 67. A player who discards those numbers, and trusts everyone else to discard them too, must next discard everything above two-thirds of 67 — and the argument repeats until the only guess left standing is 0, the game's unique equilibrium, in which every player announces zero.Convergent / replicated The mathematics has a clean bottom, yet standing on it is a mistake of its own kind: two-thirds of what a real crowd actually does is nowhere near zero. The winning move is not the equilibrium — it is one step ahead of the crowd you are actually in. You are not solving for an answer; you are estimating how far other people will climb the ladder before they stop.

What this shows

The name comes from chapter 12 of Keynes's General Theory (1936), which likens professional investment to newspaper competitions in which entrants pick the six prettiest faces from a hundred photographs, the prize going to the entrant whose picks best match the average preference. Keynes's competitors reach "the third degree", devoting their intelligences "to anticipating what average opinion expects the average opinion to be" — and some, he believed, practise "the fourth, fifth and higher degrees".Historical / descriptive The number game distils that passage into something measurable — and what it measures is robust: the pattern survives outside the laboratory at enormous scale. When a business daily in the UK, a business daily in Spain and a German popular-science magazine ran the same game as prize contests in the late 1990s, 7,900 readers entered, the most popular numbers everywhere were about 33, about 22 and the equilibrium choices 0 and 1, the three averages ran from 18.91 to 25.47, and the winning numbers all fell between 13 and 17.Convergent / replicated Different countries, different languages, different readerships — the same few rungs of the same ladder.

What this does not show

A tempting reading is that high guessers are fools and the people who write 0 have seen through the game. The evidence points the other way: seeing the equilibrium is not the same as playing it. Among magazine readers whose written comments correctly described the full unravelling to zero, 58% of a sampled fifty still chose a number above the equilibrium — deliberately, because they expected everyone else to stop iterating early — and they were right: the winning numbers in all three newspaper contests sat far above zero.Supported, with limits Nor is one guess a measurement of you. A single number cannot separate luck, habit, ladder-climbing and second-guessing, and your session summary describes only what you did against one recorded crowd — the site draws no conclusions about your reasoning or intelligence.

Research and limitations

How deep do people actually think? much of this behaviour can be captured by assuming people simply differ in how many steps they think. In Camerer, Ho and Chong's cognitive hierarchy model, where each player best-responds to the mix of players reasoning fewer steps than themselves, the median estimate across 24 beauty-contest data sets is about 1.6 thinking steps, and an average of 1.5 steps fits data from many other games — which is why group averages stall around 30 instead of unravelling to zero.Supported, with limits That is a model fit, not a mind-reading: rival accounts describe the same data, and calling any single guess "Level 1" is an inference about a distribution, never a fact about one person's thoughts.

Repetition changes the picture, slowly. played repeatedly with feedback, the crowd does creep toward zero: in Nagel's four-round sessions most players lowered their guesses from round to round and the median fell every period, yet even in the final round of the two-thirds sessions only one player out of 67 chose a number below 1.Supported, with limits Two honesty notes about our version: the crowd you face is an approximate reconstruction of the published first-round distribution, rebuilt from the paper's figures rather than its raw data, and the original samples were 1990s classroom volunteers paid in Deutschmarks and self-selected newspaper readers — a crowd, not the crowd.

Research drawer — claims, sources and limits

Every highlighted claim above is recorded here with its evidence grade and sources. Grades are per claim; this site never computes an overall truth score.

↩ hardly anyone plays the theoretically perfect move on first encounter. In Nagel's classic 1995 experiment the average first-round guess in the two-thirds game was 36.73 and the median 33, not a single player chose 0, and almost half of all choices fell in the neighbourhoods of 33 and 22 — exactly where one and two rounds of thinking about everyone else would land you.

Convergent / replicated

Nagel, R. (1995). Unraveling in guessing games: An experimental study. American Economic Review, 85(5), 1313-1326. https://extranet.parisschoolofeconomics.eu/docs/guesnerie-roger/nagel95.pdf · accessed 2026-08-24
Support note: Figure 1B reports median 33 and mean 36.73 for the first period of the p = 2/3 sessions; the text states no subject chose 0 in the 2/3 and 1/2 sessions, and that in those sessions almost 50 percent of choices fall in the neighbourhood intervals of iteration step 1 or 2 (the intervals around 33.33 and 22.22).

Bosch-Domènech, A., Montalvo, J. G., Nagel, R., & Satorra, A. (2002). One, Two, (Three), Infinity, ...: Newspaper and Lab Beauty-Contest Experiments. American Economic Review, 92(5), 1687-1701. https://doi.org/10.1257/000282802762024737 · accessed 2026-08-24
Support note: Corroboration at scale — reports that the most popular numbers in all three newspaper experiments were about 33, about 22 and the equilibria, matching the laboratory first-round pattern.

↩ no guess above about 67 can ever be a best reply: even if every other player picked 100, two-thirds of the average would sit near 67. A player who discards those numbers, and trusts everyone else to discard them too, must next discard everything above two-thirds of 67 — and the argument repeats until the only guess left standing is 0, the game's unique equilibrium, in which every player announces zero.

Convergent / replicated

Nagel, R. (1995). Unraveling in guessing games: An experimental study. American Economic Review, 85(5), 1313-1326. https://extranet.parisschoolofeconomics.eu/docs/guesnerie-roger/nagel95.pdf · accessed 2026-08-24
Support note: States that for 0 <= p < 1 there exists only one Nash equilibrium, at which all players choose 0, that all announcing 0 is the only strategy combination surviving infinitely repeated simultaneous elimination of weakly dominated strategies, and that numbers in (100p, 100] are weakly dominated by 100p.

Camerer, C. F., Ho, T.-H., & Chong, J.-K. (2004). A Cognitive Hierarchy Model of Games. Quarterly Journal of Economics, 119(3), 861-898. https://doi.org/10.1162/0033553041502225 · accessed 2026-08-24
Support note: Page 862 walks the same argument informally — even if all the other players guess 100, one should guess no more than 2/3 times 100, or 67, and iterating the reasoning concludes that the only rational and consistent choice for all players is zero.

↩ The name comes from chapter 12 of Keynes's General Theory (1936), which likens professional investment to newspaper competitions in which entrants pick the six prettiest faces from a hundred photographs, the prize going to the entrant whose picks best match the average preference. Keynes's competitors reach "the third degree", devoting their intelligences "to anticipating what average opinion expects the average opinion to be" — and some, he believed, practise "the fourth, fifth and higher degrees".

Historical / descriptive

Keynes, J. M. (1936). The General Theory of Employment, Interest and Money. London: Macmillan. Chapter 12, "The State of Long-Term Expectation". https://www.marxists.org/reference/subject/economics/keynes/general-theory/ch12.htm · accessed 2026-08-24
Support note: Chapter 12 contains the passage likening professional investment to newspaper competitions in which competitors pick the six prettiest faces from a hundred photographs, the third-degree sentence about anticipating what average opinion expects the average opinion to be, and the closing line about some practising the fourth, fifth and higher degrees.

Camerer, C. F., Ho, T.-H., & Chong, J.-K. (2004). A Cognitive Hierarchy Model of Games. Quarterly Journal of Economics, 119(3), 861-898. https://doi.org/10.1162/0033553041502225 · accessed 2026-08-24
Support note: Quotes the same passage, attributing it to p. 156, as the origin of the beauty-contest game, and notes Keynes's wording suggests he believed few investors do more than three steps of reasoning.

↩ the pattern survives outside the laboratory at enormous scale. When a business daily in the UK, a business daily in Spain and a German popular-science magazine ran the same game as prize contests in the late 1990s, 7,900 readers entered, the most popular numbers everywhere were about 33, about 22 and the equilibrium choices 0 and 1, the three averages ran from 18.91 to 25.47, and the winning numbers all fell between 13 and 17.

Convergent / replicated

Bosch-Domènech, A., Montalvo, J. G., Nagel, R., & Satorra, A. (2002). One, Two, (Three), Infinity, ...: Newspaper and Lab Beauty-Contest Experiments. American Economic Review, 92(5), 1687-1701. https://doi.org/10.1257/000282802762024737 · accessed 2026-08-24
Support note: Reports 7,900 total participants (1,476 in the Financial Times contest, 3,696 in Expansión, 2,728 in Spektrum der Wissenschaft), averages of 18.91 (FT), 25.47 (Expansión) and 22.08 (Spektrum), winning numbers 13, 16.99 and 14.7, and Fact 1: the most popular numbers in all three experiments are about 33, about 22 and the equilibria of the game (0 and 1).

↩ seeing the equilibrium is not the same as playing it. Among magazine readers whose written comments correctly described the full unravelling to zero, 58% of a sampled fifty still chose a number above the equilibrium — deliberately, because they expected everyone else to stop iterating early — and they were right: the winning numbers in all three newspaper contests sat far above zero.

Supported, with limits

Bosch-Domènech, A., Montalvo, J. G., Nagel, R., & Satorra, A. (2002). One, Two, (Three), Infinity, ...: Newspaper and Lab Beauty-Contest Experiments. American Economic Review, 92(5), 1687-1701. https://doi.org/10.1257/000282802762024737 · accessed 2026-08-24
Support note: Facts 3 and 4: of 50 randomly sampled Spektrum comments describing the equilibrium process of infinite iteration, 29 (58%) bounced back to choose a number larger than the equilibrium (most staying below 10), explicitly because they took the bounded rationality of others into account; the three winning numbers were 13, 16.99 and 14.7.

↩ much of this behaviour can be captured by assuming people simply differ in how many steps they think. In Camerer, Ho and Chong's cognitive hierarchy model, where each player best-responds to the mix of players reasoning fewer steps than themselves, the median estimate across 24 beauty-contest data sets is about 1.6 thinking steps, and an average of 1.5 steps fits data from many other games — which is why group averages stall around 30 instead of unravelling to zero.

Supported, with limits

Camerer, C. F., Ho, T.-H., & Chong, J.-K. (2004). A Cognitive Hierarchy Model of Games. Quarterly Journal of Economics, 119(3), 861-898. https://doi.org/10.1162/0033553041502225 · accessed 2026-08-24
Support note: Abstract states that step-k thinkers best-respond assuming others are distributed over steps 0 to k-1 and that an average of 1.5 steps fits data from many games; page 863 reports the median estimate tau = 1.61 across 24 beauty-contest data sets and says this explains why convergence stops at an average around 30 rather than at the equilibrium of zero.

↩ played repeatedly with feedback, the crowd does creep toward zero: in Nagel's four-round sessions most players lowered their guesses from round to round and the median fell every period, yet even in the final round of the two-thirds sessions only one player out of 67 chose a number below 1.

Supported, with limits

Nagel, R. (1995). Unraveling in guessing games: An experimental study. American Economic Review, 85(5), 1313-1326. https://extranet.parisschoolofeconomics.eu/docs/guesnerie-roger/nagel95.pdf · accessed 2026-08-24
Support note: Reports that 163 of 201 round-to-round observations in the 2/3 sessions (3 transition periods x 67 subjects) decreased, that medians decrease over time in all p < 1 sessions, and — in the paragraph discussing the fourth round — that in the 2/3 sessions only one player chose a number less than 1.