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Do Nonstrategic Considerations Matter for Behavior in Games? An Experimental Study Informed by Direct-sum Decompositions of Game

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  • Iriberri, Nagore
  • García-Galocha, Aleix
  • Iñarra, Elena

Abstract

We use direct-sum decomposition proposed by Candogan et al. (2011) to decompose any normal-form finite game into the strategic and the nonstrategic components. Nash equilibrium is invariant to changes in the nonstrategic component. Mutual-Max-Sum, a new solution concept defined in this paper, depends only on the nonstrategic component, identifies the most relevant strategy profile in this component and it is invariant to changes in the strategic component. We design 3x3 games to empirically test, whether and when, manipulations in the nonstrategic component affect individual behavior and whether Mutual-Max-Sum is behaviorally relevant. We conclude that Candogan et al. (2011)’s decomposition is informative about individual behavior in games.

Suggested Citation

  • Iriberri, Nagore & García-Galocha, Aleix & Iñarra, Elena, 2022. "Do Nonstrategic Considerations Matter for Behavior in Games? An Experimental Study Informed by Direct-sum Decompositions of Game," CEPR Discussion Papers 17578, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:17578
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    More about this item

    Keywords

    Nash equilibrium; altruism;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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