Loss avoidance as selection principle: Evidence from simple stag-hunt games
AbstractWe investigate experimentally the conjecture that loss avoidance solves the tension in stag-hunt games for which payoff dominance and risk dominance make conflicting predictions. Contrary to received textbook wisdom, money-losing outcomes do shift behavior, albeit not strongly, toward the payoff-dominant equilibrium.
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Bibliographic InfoArticle provided by Elsevier in its journal Economics Letters.
Volume (Year): 88 (2005)
Issue (Month): 1 (July)
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Web page: http://www.elsevier.com/locate/ecolet
Other versions of this item:
- Ondrej Rydval & Andreas Ortmann, 2004. "Loss avoidance as selection principle: evidence from simple stag-hunt games," CERGE-EI Working Papers wp245, The Center for Economic Research and Graduate Education - Economic Institute, Prague.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
- D9 - Microeconomics - - Intertemporal Choice
- D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations
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