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Can tournaments induce rational play in the centipede game? Exploring dominance vs. strategic uncertainty

Author

Listed:
  • Christopher R Mcintosh

    (University of Minnesota Duluth)

  • Jason F Shogren

    (University of Wyoming)

  • Andrew J Moravec

    (University of Minnesota Institute of Technology)

Abstract

We compare behavior in a one-shot Centipede game across several payoff structures including nonlinear payoff tournaments. Assuming Nash to be optimal, results suggest nonlinear tournament payoffs based on overall relative rewards are not sufficient to increase Nash results in the one-shot Centipede style setting. Evidence suggests that reducing strategic uncertainty is more important than increasing dominance in promoting Nash play.

Suggested Citation

  • Christopher R Mcintosh & Jason F Shogren & Andrew J Moravec, 2009. "Can tournaments induce rational play in the centipede game? Exploring dominance vs. strategic uncertainty," Economics Bulletin, AccessEcon, vol. 29(3), pages 2018-2024.
    • Handle: RePEc:ebl:ecbull:eb-09-00319
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    References listed on IDEAS

    as
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    8. Ehrenberg, Ronald G & Bognanno, Michael L, 1990. "Do Tournaments Have Incentive Effects?," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1307-1324, December.
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    Cited by:

    1. Caginalp, Gunduz & Ho, Shirley J., 2018. "Does competition inhibit fairness and altruism?," Economic Modelling, Elsevier, vol. 72(C), pages 54-64.

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    More about this item

    Keywords

    Centipede game; payoff tournaments; experiment; strategic uncertainty; dominance;
    All these keywords.

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C9 - Mathematical and Quantitative Methods - - Design of Experiments

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