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Introspection in One-shot Traveler's Dilemma Games

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  • Susana Cabrera
  • C. Monica Capra
  • Rosario Gomez

Abstract

We report results of one-shot traveler's dilemma game experiments to test the predictions of a model of introspection. The model describes a noisy out-of-equilibrium process by which players reach a decision of what to do in one-shot strategic interactions. To test the robustness of the model and to compare it to other models of introspection without noise, we introduce non-binding advice. Advice has the effect of coordinating all players' beliefs onto a common strategy. Experimentally, advice is implemented by asking subjects who participated in a repeated traveler's dilemma game to recommend an action to subjects playing one-shot games with identical parameters. In contrast to observations, models based on best-response dynamics would predict lower claims than the advised. We show that our model's predictions with and without advice are consistent with the data.

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Paper provided by Department of Economics, Emory University (Atlanta) in its series Emory Economics with number 0504.

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Date of creation: Jan 2005
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Handle: RePEc:emo:wp2003:0504

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  1. Simon P. Anderson & Jacob K. Goeree & Charles A. Holt, 1999. "The Logit Equilibrium: A Perspective on Intuitive Behavioral Anomalies," Virginia Economics Online Papers 332, University of Virginia, Department of Economics.
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  9. Russell Cooper & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1989. "Communication in the Battle of the Sexes Game: Some Experimental Results," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 568-587, Winter.
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  16. C. Monica Capra, 1999. "Anomalous Behavior in a Traveler's Dilemma?," American Economic Review, American Economic Association, vol. 89(3), pages 678-690, June.
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Cited by:
  1. Kaushik Basuy & Leonardo Becchetti & Luca Stanca, 2008. "Experiments with the Traveler's Dilemma: Welfare, Strategic Choice and Implicit Collusion," Working Papers 147, University of Milano-Bicocca, Department of Economics, revised Oct 2008.

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