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Unequal Outside Options in the Lost Wallet Game

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Author Info
Maroš Servátka () (University of Canterbury)
Radovan Vadovic

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Abstract

Experimental evidence suggests the size of the foregone outside option of the first mover does not affect the behavior of the second mover in the lost wallet game. In this paper we experimentally compare the behavior of subjects when they face an outside option with unequal payoffs, i.e., the first mover gets 10 and the second mover gets 0, and when they face an outside option with equal payoffs, i.e., both get 5. Consistent with the most of the literature we do not find a significant difference in behavior of second movers.

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File URL: http://www.econ.canterbury.ac.nz/RePEc/cbt/econwp/0914.pdf
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Publisher Info
Paper provided by University of Canterbury, Department of Economics in its series Working Papers in Economics with number 09/14.

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Length: 15 pages
Date of creation: 16 Oct 2009
Date of revision:
Handle: RePEc:cbt:econwp:09/14

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Related research
Keywords: Experimental economics; fairness; inequality; lost wallet game; outside option;

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior

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This page was last updated on 2009-11-20.

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