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Why did he do that? Using counterfactuals to study the effect of intentions in extensive form games

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  • Yola Engler
  • Rudolf Kerschbamer
  • Lionel Page

Abstract

We investigate the role of intentions in two-player two-stage games. For this purpose we systematically vary the set of opportunity sets the first mover can chose from and study how the second mover reacts not only to opportunities of gains but also of losses created by the choice of the first mover. We find that the possibility of gains for the second mover (generosity) and the risk of losses for the first mover (vulnerability) are important drivers for second mover behavior. On the other hand, efficiency concerns and an aversion against violating trust seem to be far less important motivations. We also find that second movers compare the actual choice of the first mover and the alternative choices that would have been available to him to allocations that involve equal material payoffs.

Suggested Citation

  • Yola Engler & Rudolf Kerschbamer & Lionel Page, 2016. "Why did he do that? Using counterfactuals to study the effect of intentions in extensive form games," Working Papers 2016-18, Faculty of Economics and Statistics, Universität Innsbruck.
    • Handle: RePEc:inn:wpaper:2016-18
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    Cited by:

    1. Attanasi, Giuseppe & Rimbaud, Claire & Villeval, Marie Claire, 2023. "Guilt aversion in (new) games: Does partners' payoff vulnerability matter?," Games and Economic Behavior, Elsevier, vol. 142(C), pages 690-717.
    2. Giuseppe Attanasi & Claire Rimbaud & Marie-Claire Villeval, 2020. "Guilt Aversion in (New) Games: the Role of Vulnerability," GREDEG Working Papers 2020-15, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    3. repec:hal:wpaper:halshs-03620418 is not listed on IDEAS
    4. Joaquín Gómez‐Miñambres & Eric Schniter & Timothy W. Shields, 2021. "Investment Choice Architecture In Trust Games: When “All‐In” Is Not Enough," Economic Inquiry, Western Economic Association International, vol. 59(1), pages 300-314, January.
    5. Cox, James C. & Kerschbamer, Rudolf & Neururer, Daniel, 2016. "What is trustworthiness and what drives it?," Games and Economic Behavior, Elsevier, vol. 98(C), pages 197-218.

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    More about this item

    Keywords

    Social Preferences; Other-Regarding Preferences; Intentions; Reciprocity; Trust Game; Experimental Economics; Behavioral Economics;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D64 - Microeconomics - - Welfare Economics - - - Altruism; Philanthropy; Intergenerational Transfers

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