Can tournaments induce rational play in the centipede game? Exploring dominance vs. strategic uncertainty
AbstractWe compare behavior in a one-shot Centipede game across several payoff structures including nonlinear payoff tournaments. Assuming Nash to be optimal, results suggest nonlinear tournament payoffs based on overall relative rewards are not sufficient to increase Nash results in the one-shot Centipede style setting. Evidence suggests that reducing strategic uncertainty is more important than increasing dominance in promoting Nash play.
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Bibliographic InfoArticle provided by AccessEcon in its journal Economics Bulletin.
Volume (Year): 29 (2009)
Issue (Month): 3 ()
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Centipede game; payoff tournaments; experiment; strategic uncertainty; dominance;
Find related papers by JEL classification:
- C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
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