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Expectation Formation in Step-Level Public Good Games

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  • Offerman, Theo
  • Sonnemans, Joep
  • Schram, Arthur

Abstract

This article focuses on the process of expectation formation. Specifically, the question is addressed whether individuals think strategically when they form beliefs about other players' behavior. Most belief learning models assume that people abstract from strategic considerations. Using an incentive-compatible mechanism, experimental data are obtained on subjects' expectations in a step-level public good game and in a game against nature. Beliefs in the interactive games develop in the same way as in the game against nature, providing evidence that strategic considerations do not play a role. The evidence is consistent with predictions derived from the naive Bayesian model. Copyright 2001 by Oxford University Press.

Suggested Citation

  • Offerman, Theo & Sonnemans, Joep & Schram, Arthur, 2001. "Expectation Formation in Step-Level Public Good Games," Economic Inquiry, Western Economic Association International, vol. 39(2), pages 250-269, April.
  • Handle: RePEc:oup:ecinqu:v:39:y:2001:i:2:p:250-69
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    Cited by:

    1. Terracol, Antoine & Vaksmann, Jonathan, 2009. "Dumbing down rational players: Learning and teaching in an experimental game," Journal of Economic Behavior & Organization, Elsevier, vol. 70(1-2), pages 54-71, May.
    2. Anauati, María Victoria & Feld, Brian & Galiani, Sebastian & Torrens, Gustavo, 2016. "Collective action: Experimental evidence," Games and Economic Behavior, Elsevier, vol. 99(C), pages 36-55.
    3. Sam Asher & Lorenzo Casaburi & Plamen Nikolov & Maoliang Ye, 2010. "One step at a time: Does gradualism build coordination?," Framed Field Experiments 00188, The Field Experiments Website.
    4. Sabrina Teyssier, 2012. "Inequity and risk aversion in sequential public good games," Public Choice, Springer, vol. 151(1), pages 91-119, April.
    5. Michael McBride, 2010. "Threshold uncertainty in discrete public good games: an experimental study," Economics of Governance, Springer, vol. 11(1), pages 77-99, February.
    6. Dhaene, Geert & Bouckaert, Jan, 2010. "Sequential reciprocity in two-player, two-stage games: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 70(2), pages 289-303, November.
    7. Kyle Hyndman & Antoine Terracol & Jonathan Vaksmann, 2009. "Learning and sophistication in coordination games," Experimental Economics, Springer;Economic Science Association, vol. 12(4), pages 450-472, December.
    8. Lopera Baena, Maria Adelaida, 2016. "Evidence of Conditional and Unconditional Cooperation in a Public Goods Game: Experimental Evidence from Mali," Annual Conference 2016 (Augsburg): Demographic Change 145797, Verein für Socialpolitik / German Economic Association.
    9. Feige, Christian, 2015. "Success rates in simplified threshold public goods games: A theoretical model," Working Paper Series in Economics 70, Karlsruhe Institute of Technology (KIT), Department of Economics and Business Engineering.
    10. Edward Cartwright & Anna Stepanova, 2017. "Efficiency in a forced contribution threshold public good game," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1163-1191, November.

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