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The quality of the signal matters -- a note on imperfect observability and the timing of moves

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  • Muller, Wieland

Abstract

In a recent study Huck and Müller (1998) report that--in contrast to Bagwell's (1995) prediction--first movers in a simple experimental market do not lose their commitment power in the presence of noise. The present note shows that it is the quality of the signal and not the knowledge about the physical timing of moves that is responsible for these experimental results. Additionally, the findings reported here provide further evidence that the positional order protocol cannot induce non--equilibrium play.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Economic Behavior & Organization.

Volume (Year): 45 (2001)
Issue (Month): 1 (May)
Pages: 99-106

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Handle: RePEc:eee:jeborg:v:45:y:2001:i:1:p:99-106

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Web page: http://www.elsevier.com/locate/jebo

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Cited by:
  1. Wieland Müller & Yossi Spiegel & Werner Güth, . "Noisy leadership: An experimental approach," Papers on Strategic Interaction 2002-10, Max Planck Institute of Economics, Strategic Interaction Group.
  2. Hildenbrand, Andreas, 2010. "Cournot or Stackelberg competition? A survey on experimental evidence," MPRA Paper 24468, University Library of Munich, Germany.

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