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Group Play in Games and the Role of Consent in Network Formation

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  • Charness, Gary B
  • Jackson, Matthew O.

Abstract

We study games played between groups of players, where a given group decides which strategy it will play through a vote by its members. When groups consist of two voting players, our games can also be interpreted as network-formation games. In experiments on Stag Hunt games, we find a stark contrast between how groups and individuals play, with payoffs playing a primary role in equilibrium selection when individuals play, but the structure of the voting rule playing the primary role when groups play. We develop a new solution concept, robust-belief equilibrium, which explains the data that we observe. We provide results showing that this solution concept has application beyond the particular games in our experiments.

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Bibliographic Info

Paper provided by Department of Economics, UC Santa Barbara in its series University of California at Santa Barbara, Economics Working Paper Series with number qt3wd3q7qz.

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Date of creation: 06 Sep 2006
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Handle: RePEc:cdl:ucsbec:qt3wd3q7qz

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Keywords: Groups; Networks; Game Theory; Equilibrium Selection; Equilibrium Refinement; Majority Voting; Group Play; Robust-belief Equilibrium;

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