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A Note on Disbelief in Others regarding Backward Induction

Author

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  • Andreas Tutić

    () (Institute of Sociology, Leipzig University, 04107 Leipzig, Germany
    Institute of Sociology, University of Bern, 3012 Bern, Switzerland)

  • Sascha Grehl

    () (Institute of Sociology, Leipzig University, 04107 Leipzig, Germany)

Abstract

We present experimental results on the role of beliefs in the cognitive ability of others in a problem involving backward induction. Using a modified version of the so-called race game, our design allows the effects of a player’s own inability to perform backward induction to be separated from the effects of her disbelief in the ability of others to do so. We find that behavior is responsive to the dependence on others who might fail in backward induction as well as information regarding their backward induction skills.

Suggested Citation

  • Andreas Tutić & Sascha Grehl, 2017. "A Note on Disbelief in Others regarding Backward Induction," Games, MDPI, Open Access Journal, vol. 8(3), pages 1-7, August.
  • Handle: RePEc:gam:jgames:v:8:y:2017:i:3:p:33-:d:107453
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    References listed on IDEAS

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    More about this item

    Keywords

    backward induction; iterative thinking; beliefs;

    JEL classification:

    • C - Mathematical and Quantitative Methods
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games

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