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Expectation Formation in Step-Level Public Good Games

Author

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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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    Citations

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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. 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.
    3. Maoliang Ye & Jie Zheng & Plamen Nikolov & Sam Asher, 2020. "One Step at a Time: Does Gradualism Build Coordination?," Management Science, INFORMS, vol. 66(1), pages 113-129, January.
    4. 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.
    5. David Smerdon & Theo Offerman & Uri Gneezy, 2020. "‘Everybody’s doing it’: on the persistence of bad social norms," Experimental Economics, Springer;Economic Science Association, vol. 23(2), pages 392-420, June.
    6. Sabrina Teyssier, 2012. "Inequity and risk aversion in sequential public good games," Public Choice, Springer, vol. 151(1), pages 91-119, April.
    7. Michael McBride, 2010. "Threshold uncertainty in discrete public good games: an experimental study," Economics of Governance, Springer, vol. 11(1), pages 77-99, February.
    8. 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.
    9. Angela C M de Oliveira & John M Spraggon & Matthew J Denny, 2016. "Instrumenting Beliefs in Threshold Public Goods," PLOS ONE, Public Library of Science, vol. 11(2), pages 1-15, February.
    10. Lopera Baena, Maria Adelaida, 2016. "Evidence of Conditional and Unconditional Cooperation in a Public Goods Game: Experimental Evidence from Mali," VfS Annual Conference 2016 (Augsburg): Demographic Change 145797, Verein für Socialpolitik / German Economic Association.
    11. Federica Alberti & Anna Cartwright & Edward Cartwright, 2021. "Predicting Efficiency in Threshold Public Good Games: A Learning Direction Theory Approach," Working Papers in Economics & Finance 2021-01, University of Portsmouth, Portsmouth Business School, Economics and Finance Subject Group.
    12. Zvonimir Bašic & Parampreet C. Bindra & Daniela Glätzle-Rützler & Angelo Romano & Matthias Sutter & Claudia Zoller, 2024. "The roots of cooperation," Discussion Paper Series of the Max Planck Institute for Research on Collective Goods 2024_02, Max Planck Institute for Research on Collective Goods.
    13. Yin, Xile & Li, Jianbiao & Bao, Te, 2019. "Does overconfidence promote cooperation? Theory and experimental evidence," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 79(C), pages 119-133.
    14. 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 Management.
    15. 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.
    16. Patel, Amrish & Smith, Alec, 2019. "Guilt and participation," Journal of Economic Behavior & Organization, Elsevier, vol. 167(C), pages 279-295.
    17. John Duffy & Margit Tavits, 2008. "Beliefs and Voting Decisions: A Test of the Pivotal Voter Model," American Journal of Political Science, John Wiley & Sons, vol. 52(3), pages 603-618, July.
    18. Amrish Patel & Alec Smith, 2018. "Guilt and participation," University of East Anglia School of Economics Working Paper Series 2018-01, School of Economics, University of East Anglia, Norwich, UK..

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