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Forward Induction in the Battle-of-the-Sexes Games

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Author Info
Cooper, Russell
Douglas V. DeJong
Robert Forsythe
Thomas W. Ross

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Abstract

This paper provides experimental evidence on forward induction as a refinement criterion. In the basic extensive form, one of the two players chooses to play a battle-of-the-sexes game or to receive a certain payoff. According to forward induction, choosing to play the game is a signal about intended action. Though the presence of the outside option changes play, the authors find only limited support for the forward-induction hypothesis. The effects of the outside option also reflect the creation of a focal point through the asymmetry created by offering the outside option to one of the two players. Copyright 1993 by American Economic Association.

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Publisher Info
Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 83 (1993)
Issue (Month): 5 (December)
Pages: 1303-16
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Handle: RePEc:aea:aecrev:v:83:y:1993:i:5:p:1303-16

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