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A simple questionnaire can change everything: Are strategy choices in coordination games stable?

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  • Berninghaus, Siegfried K.
  • Todorova, Lora
  • Vogt, Bodo

Abstract

This paper presents results from an experiment designed to study the effect of self reporting risk preferences on strategy choices made in a subsequently played 2x2 coordination game. The main finding is that the act of answering a questionnaire about one's own risk preferences significantly alters strategic behavior. Within a best response correspondence framework, this result can be explained by a change in either risk preferences or beliefs. We find that self reporting risk preferences induces an increase in subjects' risk aversion while keeping their beliefs unchanged. Our findings raise some questions about the stability of strategy choices in coordination games.

Suggested Citation

  • Berninghaus, Siegfried K. & Todorova, Lora & Vogt, Bodo, 2011. "A simple questionnaire can change everything: Are strategy choices in coordination games stable?," Working Paper Series in Economics 37, Karlsruhe Institute of Technology (KIT), Department of Economics and Management.
    • Handle: RePEc:zbw:kitwps:37
    DOI: 10.5445/IR/1000025277
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    Cited by:

    1. Lora R. Todorova & Bodo Vogt, 2012. "Are Behavioral Choices in the Ultimatum and Investment Games Strategic?," FEMM Working Papers 120021, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.

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    More about this item

    Keywords

    coordination game; questionnaire; risk preferences; beliefs; best response correspondence;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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