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What drives failure to maximize payoffs in the lab ? A test of the inequality aversion hypothesis

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  • Nicolas Jacquemet

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne, EEP-PSE - Ecole d'Économie de Paris - Paris School of Economics - Ecole d'Économie de Paris)

  • Adam Zylbersztejn

    ()
    (CES - Centre d'économie de la Sorbonne - CNRS : UMR8174 - Université Paris I - Panthéon-Sorbonne)

Abstract

In experiments based on the Beard and Beil (1994) game, second movers very often fail to select the decision that maximizes both players payoff. This note reports on a new experimental treatment, in which we neutralize the potential effect of inequality aversion on the likelihood of this behavior. We show this behavior is robust to this change, even after allowing for repetition-based learning.

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Paper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00611696.

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Date of creation: Jun 2011
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Handle: RePEc:hal:cesptp:halshs-00611696

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Keywords: Coordination failure; laboratory experiments; aversion to inequality.;

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  1. Greiner, Ben, 2004. "An Online Recruitment System for Economic Experiments," MPRA Paper 13513, University Library of Munich, Germany.
  2. Beard, T Randolph & Beil, Richard O, Jr & Mataga, Yoshiharu, 2001. "Reliant Behavior in the United States and Japan," Economic Inquiry, Western Economic Association International, Western Economic Association International, vol. 39(2), pages 270-79, April.
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  5. Jacquemet Nicolas & Zylbersztejn Adam, 2013. "Learning, Words and Actions: Experimental Evidence on Coordination-Improving Information," The B.E. Journal of Theoretical Economics, De Gruyter, De Gruyter, vol. 13(1), pages 33, July.
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Citations

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Cited by:
  1. Nicolas Jacquemet & Stephane Luchini & Jason Shogren & Adam Zylbersztejn, 2011. "Coordination with Communication under Oath," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers), HAL halshs-00635801, HAL.
  2. Nobuyuki Hanaki & Nicolas Jacquemet & Stéphane Luchini & Adam Zylbersztejn, 2013. "Bounded Rationality and Strategic Uncertainty in a Simple Dominance Solvable Game," Economics Discussion / Working Papers, The University of Western Australia, Department of Economics 13-14, The University of Western Australia, Department of Economics.
  3. repec:hal:cesptp:halshs-00845123 is not listed on IDEAS
  4. Nicolas Jacquemet & Adam Zylbersztejn, 2010. "Learning, words and actions : experimental evidence on coordination-improving information," Documents de travail du Centre d'Economie de la Sorbonne, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne 10064, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.

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