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An Experiment on Forward- versus Backward Induction

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  • Balkenborg, Dieter

Abstract

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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Bibliographic Info

Paper provided by University of Bonn, Germany in its series Discussion Paper Serie B with number 268.

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Length: pages
Date of creation: Jan 1994
Date of revision:
Handle: RePEc:bon:bonsfb:268

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Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany
Fax: +49 228 73 6884
Web page: http://www.bgse.uni-bonn.de

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Cited by:
  1. Huck, S. & Müller, W., 2005. "Burning money and (pseudo) first-mover advantages: An experimental study on forward induction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-171348, Tilburg University.
  2. Jordi Brandts & Antonio Cabrales & Gary Charness, 2003. "Forward induction and the excess capacity puzzle: An experimental investigation," Levine's Bibliography 666156000000000253, UCLA Department of Economics.
  3. Ken Binmore & Larry Samuelson, . "Evolutionary Drift and Equilibrium Selection," ELSE working papers 011, ESRC Centre on Economics Learning and Social Evolution.
  4. Alessandro Innocenti & Mauro Caminati & Roberto Ricciuti, 2003. "Drift effect and timing without observability: experimental evidence," Department of Economics University of Siena 405, Department of Economics, University of Siena.
  5. Cabrales Goitia Antonio & Calvó-Armengol Antoni, 2007. "Corporate Downsizing to Rebuild Team Spirit," Working Papers 201084, Fundacion BBVA / BBVA Foundation.

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