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Card Games and Financial Crises

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Abstract

There may be a nexus between card games and financial markets. Akerlof and Shiller (2010) ask whether the decline in the number of bridge players and the growth in the number of poker players may have led to the current bad financial traders’ practices which are responsible for the global financial crisis. The reason is that bridge is a cooperative game generally played without monetary payoffs, while poker is an individualistic game with monetary payoffs. We simulate trust and dictator game experiments on a large sample of affiliated bridge and poker players. We find that bridge players make more polarized choices and send significantly more than poker players as trustors, a result which is reinforced when corrected for risk aversion and dictator giving. Overall, our findings do not reject the hypothesis that bridge practice is associated with a relatively higher disposition to team reasoning and strategic altruism.

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Bibliographic Info

Paper provided by Tor Vergata University, CEIS in its series CEIS Research Paper with number 256.

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Length: 43 pages
Date of creation: 09 Nov 2012
Date of revision: 09 Oct 2012
Handle: RePEc:rtv:ceisrp:256

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Postal: CEIS - Centre for Economic and International Studies - Faculty of Economics - University of Rome "Tor Vergata" - Via Columbia, 2 00133 Roma
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Keywords: trust games; financial crisis; poker; bridge;

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  1. Fehr, Ernst & Schmidt, Klaus M., 2009. "On Inequity Aversion - A Reply to Binmore and Shaked," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 256, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
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  1. Victoria Coren: the cause of the crisis
    by chris dillow in Stumbling and Mumbling on 2012-11-20 12:22:53

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