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On the relevance of irrelevant strategies

Author

Listed:
  • Ayala Arad

    (Tel Aviv University)

  • Benjamin Bachi

    (University of Haifa)

  • Amnon Maltz

    (University of Haifa)

Abstract

The experimental literature on individual choice has repeatedly documented how seemingly-irrelevant options systematically shift decision-makers’ choices. However, little is known about such effects in strategic interactions. We experimentally examine whether adding seemingly-irrelevant strategies, such as a dominated strategy or a duplicate of an existing strategy, affects players’ behavior in simultaneous games. In coordination games, we find that adding a dominated strategy increases the likelihood that players choose the strategy which dominates it, and duplicating a strategy increases its choice share; The players’ opponents seem to internalize this behavior and best respond to it. In single-equilibrium games, these effects disappear. Consequently, we suggest that irrelevant strategies affect behavior only when they serve a strategic purpose. We discuss different theoretical approaches that accommodate the effect of salience and may explain our findings.

Suggested Citation

  • Ayala Arad & Benjamin Bachi & Amnon Maltz, 2023. "On the relevance of irrelevant strategies," Experimental Economics, Springer;Economic Science Association, vol. 26(5), pages 1142-1184, November.
  • Handle: RePEc:kap:expeco:v:26:y:2023:i:5:d:10.1007_s10683-023-09814-w
    DOI: 10.1007/s10683-023-09814-w
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    More about this item

    Keywords

    Coordination; Dominated strategy; Salience; Level-k; Asymmetric dominance effect; Experiment;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D91 - Microeconomics - - Micro-Based Behavioral Economics - - - Role and Effects of Psychological, Emotional, Social, and Cognitive Factors on Decision Making

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