An Experiment on Forward- versus Backward Induction
The results of an experiment are reported where subjects played within a repeated random matching environment a simple game in extensive form. In this game backward induction based on the focal-point outcome in subgame yields an outcome different from the one that would be deduced using forward induction arguments. In each of the thirteen independent sessions we conducted more than 80% of all cases resulted in the backward induction outcome.
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|Date of creation:||Jan 1994|
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