The results of an experiment are reported where subjects played within a repeated random matching environment a simple game in extensive form. In this game backward induction based on the focal-point outcome in subgame yields an outcome different from the one that would be deduced using forward induction arguments. In each of the thirteen independent sessions we conducted more than 80% of all cases resulted in the backward induction outcome.
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Paper provided by University of Bonn, Germany in its series Discussion Paper Serie B with number
268.
Length: pages Date of creation: Jan 1994 Date of revision: Handle: RePEc:bon:bonsfb:268
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany Fax: +49 228 73 9221 Web page: http://www.bgse.uni-bonn.de/index.php?id=517
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