Order of Play, Forward Induction, and Presentation Effects in Two-Person Games
We investigate the effects of order-of-play (simultaneous, unobserved sequential and fully observed sequential play) and form of presentation (extensive vs. normal) in three simple two person games: battle-of-the-sexes with and without outside option and a three strategy game which differentiates between virtual observability (VO) and iterated elimination of dominated strategies as principles of equilibrium selection. VO predicts that knowledge of the order of play alone will affect the distribution of strategies chosen. We contrast this with the predictions of iterated elimination of dominated strategies. We report results from 1800 one-shot games conducted in 6 sessions with 120 subjects and analysed as panel data. The form of presentation strongly affects the distribution of outcomes and strategies. Information about order of play shifts the distribution of strategies away from the distribution in simultaneous play and towards the distribution in fully observed play, especially in the less complicated games presented in normal order. Order-of-play effects are less evident as complexity of the game increases. Extensive form presentation appears to induce sequential thinking even in simultaneously played games. Copyright Kluwer Academic Publishers 2003
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.:
- Amershi, A.H. & Sadanand, A.B. & Sadanand, V., 1989. "Manipulated Nash Equilibria - Ii: Some Properties," Working Papers 1989-5, University of Guelph, Department of Economics and Finance.
- Amershi, A.H. & Sadanand, A.B. & Sadanand, V., 1989. "Manipulated Nash Equilibria - I: Forward Induction And Thought Process Dynamics In Extensive Form," Working Papers 1989-4, University of Guelph, Department of Economics and Finance.
- Amnon Rapoport, 1997. "Order of Play in Strategically Equivalent Games in Extensive Form," International Journal of Game Theory, Springer, vol. 26(1), pages 113-136.
- Brandts, J. & Holt, C.A., 1989. "Forward Induction: Experimental Evidence From Two-Stage Games With Complete Information," UFAE and IAE Working Papers 118-89, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Kreps, David M., 1990. "Game Theory and Economic Modelling," OUP Catalogue, Oxford University Press, number 9780198283812.
- Camerer, Colin F. & Knez, Marc & Weber, Roberto A., 1996. "Timing and Virtual Observability in Ultimatum Bargaining and Weak Link Coordination Games," Working Papers 970, California Institute of Technology, Division of the Humanities and Social Sciences.
- Amershi Amin H. & Sadanand Asha & Sadanand Venkatraman, 1992. "Player importance and forward induction," Economics Letters, Elsevier, vol. 38(3), pages 291-297, March.
- Guth, Werner & Huck, Steffen & Rapoport, Amnon, 1998. "The limitations of the positional order effect: Can it support silent threats and non-equilibrium behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 313-325, February.
- Schotter Andrew & Weigelt Keith & Wilson Charles, 1994.
"A Laboratory Investigation of Multiperson Rationality and Presentation Effects,"
Games and Economic Behavior,
Elsevier, vol. 6(3), pages 445-468, May.
- Schotter, Andrew & Weigelt, Keith & Wilson, Charles, 1990. "A Laboratory Investigation Of Multi-Person Rationality And Presentation Effects," Working Papers 90-24, C.V. Starr Center for Applied Economics, New York University.
- Kohlberg, Elon & Mertens, Jean-Francois, 1986.
"On the Strategic Stability of Equilibria,"
Econometric Society, vol. 54(5), pages 1003-37, September.
- Martin J Osborne & Ariel Rubinstein, 2009.
"A Course in Game Theory,"
814577000000000225, UCLA Department of Economics.
- Amershi, A.H. & Sadanand, A.B. & Sadanand, V., 1989. "Manipulated Nash Equilibria - Iii: Applications And A Preliminary Experiment," Working Papers 1989-6, University of Guelph, Department of Economics and Finance.
- Cooper, Russell, et al, 1990. "Selection Criteria in Coordination Games: Some Experimental Results," American Economic Review, American Economic Association, vol. 80(1), pages 218-33, March.
- Grossman, Sanford J. & Perry, Motty, 1986. "Perfect sequential equilibrium," Journal of Economic Theory, Elsevier, vol. 39(1), pages 97-119, June.
- Cooper, Russell & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1993. "Forward Induction in the Battle-of-the-Sexes Games," American Economic Review, American Economic Association, vol. 83(5), pages 1303-16, December.
When requesting a correction, please mention this item's handle: RePEc:kap:expeco:v:6:y:2003:i:1:p:5-25. 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 references are entirely missing, you can add them using this form.