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Experts Playing the Traveler's Dilemma

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Abstract

We analyze a one-shot experiment on the traveler's dilemma in which members of the Game Theory Society, were asked to submit both a (possibly mixed) strategy and their belief concerning the average strategy of their opponents. Very few entrants expect and play the unique Nash equilibrium, while we observe a fifth playing the cooperative solution of the game, i.e. a strictly dominated strategy. The experimental data suggest to analyze the game as one of incomplete information. Most strategies observed are in the support of its Bayesian Nash equilibria. A notable exception is the Nash equilibrium strategy of the original game.

Suggested Citation

  • Tilman Becker & Michael Carter & Jörg Naeve, 2005. "Experts Playing the Traveler's Dilemma," Diskussionspapiere aus dem Institut für Volkswirtschaftslehre der Universität Hohenheim 252/2005, Department of Economics, University of Hohenheim, Germany.
    • Handle: RePEc:hoh:hohdip:252
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    Cited by:

    1. Morone, A. & Morone, P. & Germani, A.R., 2014. "Individual and group behaviour in the traveler's dilemma: An experimental study," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 49(C), pages 1-7.
    2. Wright, James R. & Leyton-Brown, Kevin, 2017. "Predicting human behavior in unrepeated, simultaneous-move games," Games and Economic Behavior, Elsevier, vol. 106(C), pages 16-37.
    3. Andrea Morone & Piergiuseppe Morone, 2016. "The Focal Point In The Traveller'S Dilemma: An Experimental Study," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 123-132, December.
    4. Baader, Malte & Vostroknutov, Alexander, 2017. "Interaction of reasoning ability and distributional preferences in a social dilemma," Journal of Economic Behavior & Organization, Elsevier, vol. 142(C), pages 79-91.
    5. Ispano, Alessandro & Schwardmann, Peter, 2017. "Cooperating over losses and competing over gains: A social dilemma experiment," Games and Economic Behavior, Elsevier, vol. 105(C), pages 329-348.
    6. Valerio Capraro, 2013. "A Model of Human Cooperation in Social Dilemmas," PLOS ONE, Public Library of Science, vol. 8(8), pages 1-6, August.
    7. 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.
    8. Mounir, Angie & Perea, Andrés & Tsakas, Elias, 2018. "Common belief in approximate rationality," Mathematical Social Sciences, Elsevier, vol. 91(C), pages 6-16.
    9. Halpern, Joseph Y. & Pass, Rafael, 2012. "Iterated regret minimization: A new solution concept," Games and Economic Behavior, Elsevier, vol. 74(1), pages 184-207.
    10. García-Pola, Bernardo, 2020. "Do people minimize regret in strategic situations? A level-k comparison," Games and Economic Behavior, Elsevier, vol. 124(C), pages 82-104.
    11. Gisèle Umbhauer, 2019. "Traveler’s dilemma : how the value of the luggage influences behavior," Working Papers of BETA 2019-13, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
    12. Wolpert David & Jamison Julian & Newth David & Harre Michael, 2011. "Strategic Choice of Preferences: the Persona Model," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 11(1), pages 1-39, August.
    13. Stefanos Leonardos & Costis Melolidakis, 2018. "On the Commitment Value and Commitment Optimal Strategies in Bimatrix Games," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 20(03), pages 1-28, September.
    14. Leonardo Becchetti, 2012. "Voting with the wallet," International Review of Economics, Springer;Happiness Economics and Interpersonal Relations (HEIRS), vol. 59(3), pages 245-268, September.
    15. Christian Bach & Andrés Perea, 2014. "Utility proportional beliefs," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(4), pages 881-902, November.
    16. Rodrigo Moro & Esteban Freidin & Fernando Tohmé, 2015. "Social preferences are not enough: Accounting for anomalous behavior in a complex mixed-motive game," Revista Cuadernos de Economia, Universidad Nacional de Colombia, FCE, CID, March.

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    More about this item

    Keywords

    Traveler's Dilemma; Experiment; Experts; Incomplete Information;
    All these keywords.

    JEL classification:

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

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