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Group Play in Games and the Role of Consent in Network Formation

  • Charness, Gary
  • Jackson, Matthew O.

We study games played between groups of players, where a given group decides which strategy it will play through a vote by its members. When groups consist of two voting players, our games can also be interpreted as network-formation games. In experiments on Stag Hunt games, we find that that the structure of the voting rule completely determines which equilibrium is played, independently of the payoff structure. Thus, we find a stark contrast between how groups and individuals play our games, with payoffs playing a much more important role in equilibrium selection in the latter case. We also explore play between groups where one member of each group dictates the play of that group. We find that the dictator tends to play a less risky strategy when choosing for a group than when playing only for him or herself. We develop a new solution concept, robust-belief equilibrium, which explains the data that we observe. We provide results showing that this solution concept has application beyond the particular games in our experiments.

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File URL: http://www.hss.caltech.edu/SSPapers/wp1193.pdf
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Paper provided by California Institute of Technology, Division of the Humanities and Social Sciences in its series Working Papers with number 1193.

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Length: 50 pages
Date of creation: May 2004
Date of revision:
Publication status: Published: Forthcoming in Journal of Economic Theory.
Handle: RePEc:clt:sswopa:1193
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Working Paper Assistant, Division of the Humanities and Social Sciences, 228-77, Caltech, Pasadena CA 91125

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Web page: http://www.hss.caltech.edu/ss
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Order Information: Postal: Working Paper Assistant, Division of the Humanities and Social Sciences, 228-77, Caltech, Pasadena CA 91125
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