Learning to Make Strategic Moves: Experimental Evidence
AbstractDo players in practice make the strategic commitment moves that are predicted by game theory? Since such strategic moves can appear somewhat counter-intuitive, we conducted an experiment to see if people make the predicted strategic move. The experiment uses a simple bargaining situation. A player can make a strategic move of committing to not seeing what the other player will demand. Our data show that the subjects do, but only after substantial time, learn to make the predicted strategic move. We also find significant efficiency differences between our treatments that are not predicted by theory.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 10927.
Date of creation: 15 Mar 2007
Date of revision:
Strategic moves; commitment; bargaining; information; strategic value of information; physical timing effects; virtual observability; endogenous timing; learning; experiment;
Find related papers by JEL classification:
- C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bensaid, B. & Gary-Bobo, J., 1991.
"On the commitment value of contracts under renegotiation constraints,"
CORE Discussion Papers
1991002, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Bensaid, B. & Gary-Bobo, R., 1993. "On the Commitment Value of Contracts Under Renegotiation Constraints," Papers 9302, Paris X - Nanterre, U.F.R. de Sc. Ec. Gest. Maths Infor..
- Hamilton, Jonathan H. & Slutsky, Steven M., 1990.
"Endogenous timing in duopoly games: Stackelberg or cournot equilibria,"
Games and Economic Behavior,
Elsevier, vol. 2(1), pages 29-46, March.
- Hamilton, J.H. & Slutsky, S.M., 1988. "Endogenous Timing In Duopoly Games: Stackelberg Or Cournot Equilibria," Papers 88-4, Florida - College of Business Administration.
- Abhinay Muthoo, .
"A Bargaining Model Based on the Commitment Tactic,"
Economics Discussion Papers
420, University of Essex, Department of Economics.
- Wieland Müller & Yossi Spiegel & Werner Güth, .
"Noisy leadership: An experimental approach,"
Papers on Strategic Interaction
2002-10, Max Planck Institute of Economics, Strategic Interaction Group.
- van Damme,Eric, 1987.
"Stable equilibria and forward induction,"
Discussion Paper Serie A
128, University of Bonn, Germany.
- van Damme, Eric & Hurkens, Sjaak, 1997.
"Games with Imperfectly Observable Commitment,"
Games and Economic Behavior,
Elsevier, vol. 21(1-2), pages 282-308, October.
- Fershtman, Chaim & Kalai, Ehud, 1997.
International Economic Review,
Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 38(4), pages 763-74, November.
- Chaim Fershtman & Ehud Kalai, 1993. "Unobserved Delegation," Discussion Papers 1043, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Fershtman, C. & Kalai, E., 1993. "Unobserved Delegation," Papers 10-93, Tel Aviv - the Sackler Institute of Economic Studies.
- Huck, Steffen & Muller, Wieland, 2000.
"Perfect versus Imperfect Observability--An Experimental Test of Bagwell's Result,"
Games and Economic Behavior,
Elsevier, vol. 31(2), pages 174-190, May.
- Steffen Huck & Wieland Mueller, 1998. "Perfect versus imperfect observability---An experimental test of Bagwell's result," Experimental 9804001, EconWPA.
- Sjaak Hurkens & Nir Vulkan, 2000.
"Endogenous Private Information Structures,"
Econometric Society World Congress 2000 Contributed Papers
0613, Econometric Society.
- Fershtman, C. & Gneezy, U., 1997.
"Strategic delegation: An experiment,"
1997-26, Tilburg University, Center for Economic Research.
- Esther Hauk & Sjaak Hurkens, 2001.
"Secret information acquisition in Cournot markets,"
Springer, vol. 18(3), pages 661-681.
- Huck, S. & Müller, W., 2005.
"Burning money and (pseudo) first-mover advantages: An experimental study on forward induction,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-171348, Tilburg University.
- Huck, Steffen & Muller, Wieland, 2005. "Burning money and (pseudo) first-mover advantages: an experimental study on forward induction," Games and Economic Behavior, Elsevier, vol. 51(1), pages 109-127, April.
- Miguel Fonseca & Steffen Huck & Hans-Theo Normann, 2005. "Playing Cournot although they shouldn’t," Economic Theory, Springer, vol. 25(3), pages 669-677, 04.
- Guth, Werner & Huck, Steffen & Rapoport, Amnon, 1998. "The limitations of the positional order effect: Can it support silent threats and non-equilibrium behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 313-325, February.
- Damme, E.E.C. van, 1989. "Stable equilibria and forward induction," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154422, Tilburg University.
- Kyle Bagwell, 1992.
"Commitment and Observability in Games,"
1014, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Caillaud Bernard & Jullien Bruno & Picard Pierre, 1991.
"Competing vertical structures : precommitment and renegotiation,"
CEPREMAP Working Papers (Couverture Orange)
- Caillaud, Bernard & Jullien, B & Picard, P, 1995. "Competing Vertical Structures: Precommitment and Renegotiation," Econometrica, Econometric Society, vol. 63(3), pages 621-46, May.
- Bensaid, Bernard & Gary-Bobo, Robert J, 1993.
"Commitment Value of Contracts under Renegotiation Constraints,"
Econometric Society, vol. 61(6), pages 1423-29, November.
- Bensaid, B. & Gary-Bobo, R. J., . "Commitment value of contracts under renegotiation constraints," CORE Discussion Papers RP -1107, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Aghion, Philippe & Bolton, Patrick, 1987. "Contracts as a Barrier to Entry," American Economic Review, American Economic Association, vol. 77(3), pages 388-401, June.
- Camerer, Colin F. & Knez, Marc & Weber, Roberto A., 1996. "Timing and Virtual Observability in Ultimatum Bargaining and Weak Link Coordination Games," Working Papers 970, California Institute of Technology, Division of the Humanities and Social Sciences.
- Nash, John, 1953. "Two-Person Cooperative Games," Econometrica, Econometric Society, vol. 21(1), pages 128-140, April.
- Berg Joyce & Dickhaut John & McCabe Kevin, 1995. "Trust, Reciprocity, and Social History," Games and Economic Behavior, Elsevier, vol. 10(1), pages 122-142, July.
- George Loewenstein & Don Moore & Roberto Weber, 2006. "Misperceiving the value of information in predicting the performance of others," Experimental Economics, Springer, vol. 9(3), pages 281-295, September.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ekkehart Schlicht).
If references are entirely missing, you can add them using this form.