Saliency of outside options in the lost wallet game
This paper reports an experiment designed to shed light on an empirical puzzle observed by Dufwenberg and Gneezy (2000) that the size of the foregone outside option by the first mover does not affect the behavior of the second mover in a lost wallet game. Our conjecture was that the original protocol may not have made the size of the forgone outside option salient to second movers. Therefore, we change two features of the Dufwenberg and Gneezy protocol: (i) instead of the strategy method we implement a direct response method (sequential play) for the decision of the second mover; and (ii) we use paper money certificates that are passed between the subjects rather than having subjects write down numbers representing their decisions. We observe that our procedure yields qualitatively the same result as the Dufwenberg and Gneezy experiment, i.e., the second movers do not respond to the change in the outside option of the first movers.
(This abstract was borrowed from another version of this item.)
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Maroš Servátka & Radovan Vadovic, 2008. "Does Fairness of the Outside Option Matter?," Working Papers in Economics 08/06, University of Canterbury, Department of Economics and Finance.
- Maroš Servátka & Steven Tucker & Radovan Vadovic, 2008.
"Words Speak Louder Than Money,"
Working Papers in Economics
08/18, University of Canterbury, Department of Economics and Finance.
- Dufwenberg, Martin & Gneezy, Uri, 2000. "Measuring Beliefs in an Experimental Lost Wallet Game," Games and Economic Behavior, Elsevier, vol. 30(2), pages 163-182, February.
- Battigalli, Pierpaolo & Dufwenberg, Martin, 2009.
"Dynamic psychological games,"
Journal of Economic Theory,
Elsevier, vol. 144(1), pages 1-35, January.
- Pierpaolo Battigalli & Martin Dufwenberg, 2005. "Dynamic Psychological Games," Levine's Bibliography 784828000000000046, UCLA Department of Economics.
- Pierpaolo Battigalli & Martin Dufwenberg, 2005. "Dynamic Psychological Games," Working Papers 287, IGIER (Innocenzo Gasparini Institute for Economic Research), Bocconi University.
- Falk, Armin & Fehr, Ernst & Fischbacher, Urs, 2001.
"On the Nature of Fair Behaviour,"
CEPR Discussion Papers
2984, C.E.P.R. Discussion Papers.
- Casari, Marco & Cason, Timothy N., 2009. "The strategy method lowers measured trustworthy behavior," Economics Letters, Elsevier, vol. 103(3), pages 157-159, June.
- Guth, Werner & Huck, Steffen & Muller, Wieland, 2001. "The Relevance of Equal Splits in Ultimatum Games," Games and Economic Behavior, Elsevier, vol. 37(1), pages 161-169, October.
- Timothy N. Cason & Vai-Lam Mui, 1998. "Social Influence in the Sequential Dictator Game," Monash Economics Working Papers archive-37, Monash University, Department of Economics.
- Charness, Gary & Haruvy, Ernan & Sonsino, Doron, 2007. "Social distance and reciprocity: An Internet experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 63(1), pages 88-103, May.
- James C. Cox & Daniel Friedman & Steven Gjerstad, 2006.
"A Tractable Model of Reciprocity and Fairness,"
Experimental Economics Center Working Paper Series
2006-05, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- James Cox & Daniel Friedman & Steven Gjerstad, 2004. "A Tractable Model of Reciprocity and Fairness," Experimental 0406001, EconWPA.
- Cox, J. & Friedman, D. & Gjerstad, S., 2006. "A Trackable Model of Reciprocity and Fairness," Purdue University Economics Working Papers 1181, Purdue University, Department of Economics.
- Jim C. Cox & Daniel Friedman & Vjollca Sadiraj, 2005.
784828000000000595, UCLA Department of Economics.
- James C. Cox & Daniel Friedman & Vjollca Sadiraj, . "Revealed Altruism," Experimental Economics Center Working Paper Series 2006-09, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University, revised Jul 2007.
- Cox, James C. & Friedman, Daniel & Sadiraj, Vjollca, 2009. "Revealed Altruism," Santa Cruz Department of Economics, Working Paper Series qt6rb5t4mc, Department of Economics, UC Santa Cruz.
- Armin Falk & Michael Kosfeld, .
"The Hidden Costs of Control,"
IEW - Working Papers
250, Institute for Empirical Research in Economics - University of Zurich.
- James C. Cox & Vjollca Sadiraj, 2006.
"On Modeling Voluntary Contributions to Public Goods,"
Experimental Economics Center Working Paper Series
2006-26, Experimental Economics Center, Andrew Young School of Policy Studies, Georgia State University.
- James C. Cox & Vjollca Sadiraj, 2007. "On Modeling Voluntary Contributions to Public Goods," Public Finance Review, , vol. 35(2), pages 311-332, March.
- Brandts, Jordi & Guth, Werner & Stiehler, Andreas, 2006. "I want YOU! An experiment studying motivational effects when assigning distributive power," Labour Economics, Elsevier, vol. 13(1), pages 1-17, February.
- James C. Cox & Cary A. Deck, 2005. "On the Nature of Reciprocal Motives," Economic Inquiry, Western Economic Association International, vol. 43(3), pages 623-635, July.
- Oxoby, Robert J. & McLeish, Kendra N., 2004. "Sequential decision and strategy vector methods in ultimatum bargaining: evidence on the strength of other-regarding behavior," Economics Letters, Elsevier, vol. 84(3), pages 399-405, September.
- David J Cooper & John B Van Huyck, 2002.
"Evidence on the Equivalence of the Stratetic and Extensive Form Representation of Games,"
Levine's Working Paper Archive
234936000000000001, David K. Levine.
- Cooper, David J. & Van Huyck, John B., 2003. "Evidence on the equivalence of the strategic and extensive form representation of games," Journal of Economic Theory, Elsevier, vol. 110(2), pages 290-308, June.
- Jeannette Brosig & Joachim Weimann & Chun-Lei Yang, 2003. "The Hot Versus Cold Effect in a Simple Bargaining Experiment," Experimental Economics, Springer, vol. 6(1), pages 75-90, June.
When requesting a correction, please mention this item's handle: RePEc:kap:expeco:v:13:y:2010:i:1:p:66-74. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Sonal Shukla)or (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.