Perfect versus imperfect observability---An experimental test of Bagwell's result
AbstractIn a seminal paper Bagwell (1995) claims that the first mover advantage, i.e. the strategic benefit of committing oneself to an action before others can do, vanishes completely if this action is only imperfectly observed by second movers. In our paper we report on an experimental test of this prediction. We implement three versions of a game similar to an example^? given by Bagwell, each time varying the quality of the signal which informs the second mover. For experienced players we do not find empirical support for Bagwell's result. Instead, we find some support for the noisy Stackelberg equilibrium emphasised by van Damme and Hurkens (1997).
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Bibliographic InfoPaper provided by EconWPA in its series Experimental with number 9804001.
Length: 19 pages
Date of creation: 17 Apr 1998
Date of revision:
Note: Type of Document - ps; prepared on IBM PC; pages: 19 ; figures: included
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commitment; first-mover advantage; imperfect observability; experimental economics;
Other versions of this item:
- 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.
- C9 - Mathematical and Quantitative Methods - - Design of Experiments
This paper has been announced in the following NEP Reports:
- NEP-ALL-1998-10-02 (All new papers)
- NEP-EXP-1998-10-02 (Experimental Economics)
- NEP-GTH-1998-10-02 (Game Theory)
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.:
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