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Introspection in One-shot Traveler's Dilemma Games

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  • Susana Cabrera
  • C. Monica Capra
  • Rosario Gomez

Abstract

We report results of one-shot traveler's dilemma game experiments to test the predictions of a model of introspection. The model describes a noisy out-of-equilibrium process by which players reach a decision of what to do in one-shot strategic interactions. To test the robustness of the model and to compare it to other models of introspection without noise, we introduce non-binding advice. Advice has the effect of coordinating all players' beliefs onto a common strategy. Experimentally, advice is implemented by asking subjects who participated in a repeated traveler's dilemma game to recommend an action to subjects playing one-shot games with identical parameters. In contrast to observations, models based on best-response dynamics would predict lower claims than the advised. We show that our model's predictions with and without advice are consistent with the data.

Suggested Citation

  • Susana Cabrera & C. Monica Capra & Rosario Gomez, 2005. "Introspection in One-shot Traveler's Dilemma Games," Emory Economics 0504, Department of Economics, Emory University (Atlanta).
  • Handle: RePEc:emo:wp2003:0504
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    References listed on IDEAS

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    Cited by:

    1. Kaushik Basu & Leonardo Becchetti & Luca Stanca, 2011. "Experiments with the Traveler’s Dilemma: welfare, strategic choice and implicit collusion," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 37(4), pages 575-595, October.

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