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Learning to Make Strategic Moves: Experimental Evidence

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Author Info
Poulsen, Anders

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Abstract

Do 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.

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File URL: http://mpra.ub.uni-muenchen.de/10927/
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Publisher Info
Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 10927.

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Date of creation: 15 Mar 2007
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Handle: RePEc:pra:mprapa:10927

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Related research
Keywords: 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

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