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Unequal outside options in the lost wallet game


  • Maroš Servátka

    () (Department of Economics and Finance, University of Canterbury)

  • Radovan Vadovič

    () (Centro de Investigación Económica, Instituto Tecnológico Autónomo de México)


Experimental evidence suggests the size of the foregone outside option of the first mover does not affect the behavior of the second mover in the lost wallet game. In this paper we experimentally compare the behavior of subjects when they face an outside option with unequal payoffs, i.e., the first mover gets 10 and the second mover gets 0, and when they face an outside option with equal payoffs, i.e., both get 5. Consistent with the most of the literature we do not find a significant difference in behavior of second movers.

Suggested Citation

  • Maroš Servátka & Radovan Vadovič, 2009. "Unequal outside options in the lost wallet game," Economics Bulletin, AccessEcon, vol. 29(4), pages 2870-2883.
  • Handle: RePEc:ebl:ecbull:eb-09-00627

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    References listed on IDEAS

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    Cited by:

    1. König, Clemens, 2013. "Net-Loss Reciprocation and the Context Dependency of Economic Choices," Discussion Papers in Economics 17474, University of Munich, Department of Economics.
    2. Woods, Daniel & Servátka, Maroš, 2016. "Testing psychological forward induction and the updating of beliefs in the lost wallet game," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 116-125.
    3. Woods, Daniel & Servátka, Maroš, 2016. "Nice to You, Nicer to Me: Does Self-Serving Generosity Diminish the Reciprocal Response?," MPRA Paper 74565, University Library of Munich, Germany.
    4. Maroš Servátka & Daniel Woods, 2015. "Testing Psychological Forward Induction in the Lost Wallet Game," Working Papers in Economics 15/09, University of Canterbury, Department of Economics and Finance.
    5. Martin Dufwenberg & Maroš Servátka & Radovan Vadovič, 2012. "ABC on Deals," Working Papers in Economics 12/14, University of Canterbury, Department of Economics and Finance.

    More about this item


    Experimental economics; fairness; inequality; lost wallet game; outside option;

    JEL classification:

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


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