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King of the Hill: Giving backward induction its best shot

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  • Dufwenberg, Martin
  • Van Essen, Matt

Abstract

We study a class of deceptively similar games, which however have different player sets and backward induction (BI) predictions that vary with their cardinality. The game-theoretic principles involved are compelling as predictions rely on weaker and less controversial epistemic foundations than needed to justify BI more generally. Are the BI predictions empirically relevant for this class of games? We design and report results from a relevant experiment.

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  • Dufwenberg, Martin & Van Essen, Matt, 2018. "King of the Hill: Giving backward induction its best shot," Games and Economic Behavior, Elsevier, vol. 112(C), pages 125-138.
    • Handle: RePEc:eee:gamebe:v:112:y:2018:i:c:p:125-138
    DOI: 10.1016/j.geb.2018.07.007
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    3. Evan M. Calford & Anujit Chakraborty, 2022. "Higher-order Beliefs in a Sequential Social Dilemma," ANU Working Papers in Economics and Econometrics 2022-681, Australian National University, College of Business and Economics, School of Economics.
    4. Neligh, Nathaniel, 2020. "Vying for dominance: An experiment in dynamic network formation," Journal of Economic Behavior & Organization, Elsevier, vol. 178(C), pages 719-739.
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    8. Bershadskyy, Dmitri & Sachs, Florian E. & Weimann, Joachim, 2023. "Collective bargaining in a shrinking group game: The role of information and communication," Journal of Economic Behavior & Organization, Elsevier, vol. 209(C), pages 391-410.

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    More about this item

    Keywords

    Backward induction; Interactive epistemology; Player set cardinality; Experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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