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Individual and Group Behaviours in the Traveller's Dilemma: An Experimental Study

Author

Listed:
  • Andrea Morone

    (LEE & Department of Economics, Universitat Jaume I
    Department of Economics, University of Bari)

  • Piergiuseppe Morone

    (LEE & Department of Economics, Universitat Jaume I
    Department of Economics, University of Foggia)

Abstract

This paper provides an experimental test of the traveller's dilemma using individual and group data. Our investigation aims to address three fundamental research questions, which can be summarised as follows: (i) claims are affected by the size of the penalty/reward; (ii) individual decisions differ significantly from group decisions; (iii) individual claims are affected by the induction of a focal point a là Schelling. Experimental findings reported in this paper provide answers to each of these questions showing that: (i) although the size of the penalty/reward did not affect subject choices in the first-period, it played a key role in determining subjects' behaviour in the repeated game; (ii) overall, groups behave more rationally, in the sense that they were always closer to the Nash equilibrium; iii) the reference point did not encourage coordination around the Pareto optimal choice.

Suggested Citation

  • Andrea Morone & Piergiuseppe Morone, 2012. "Individual and Group Behaviours in the Traveller's Dilemma: An Experimental Study," Working Papers 2012/09, Economics Department, Universitat Jaume I, Castellón (Spain).
  • Handle: RePEc:jau:wpaper:2012/09
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    Citations

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    Cited by:

    1. Andrea Morone & Simone Nuzzo & Rocco Caferra, 2019. "The Dollar Auction Game: A Laboratory Comparison Between Individuals and Groups," Group Decision and Negotiation, Springer, vol. 28(1), pages 79-98, February.
    2. 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.
    3. 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.
    4. Morone, Andrea & Temerario, Tiziana, 2016. "Are dyads conditionally cooperative? Evidence from a public goods experiment," EconStor Preprints 148356, ZBW - Leibniz Information Centre for Economics.
    5. Morone, Andrea & Temerario, Tiziana, 2015. "Eliciting Preferences Over Risk: An Experiment," MPRA Paper 68519, University Library of Munich, Germany.
    6. Vollstädt, Ulrike & Böhm, Robert, 2019. "Are groups more competitive, more selfish-rational or more prosocial bargainers?," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 78(C), pages 146-159.
    7. Morone, Andrea & Temerario, Tiziana, 2018. "Is dyads’ behaviour conditionally cooperative? Evidence from a public goods experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 73(C), pages 76-85.
    8. Temerario, Tiziana, 2014. "Individual and Group Behaviour Toward Risk: A Short Survey," MPRA Paper 58079, University Library of Munich, Germany.
    9. Steiger, Sören & Pelster, Matthias, 2020. "Social interactions and asset pricing bubbles," Journal of Economic Behavior & Organization, Elsevier, vol. 179(C), pages 503-522.

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    More about this item

    Keywords

    traveller's dilemma; focal point; individual and group decision.;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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