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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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    References listed on IDEAS

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    1. repec:bla:buecrs:v:68:y:2016:i:s1:p:123-132 is not listed on IDEAS
    2. repec:eee:jeborg:v:142:y:2017:i:c:p:79-91 is not listed on IDEAS
    3. Morone, Andrea & Nuzzo, Simone & Caferra, Rocco, 2016. "The Dollar Auction Game: A laboratory comparison between Individuals and Groups," MPRA Paper 72608, University Library of Munich, Germany.
    4. Morone, Andrea & Temerario, Tiziana, 2016. "Are dyads conditionally cooperative? Evidence from a public goods experiment," EconStor Preprints 148356, ZBW - German National Library of Economics.
    5. Morone, Andrea & Temerario, Tiziana, 2015. "Eliciting Preferences Over Risk: An Experiment," MPRA Paper 68519, University Library of Munich, Germany.
    6. 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.
    7. Temerario, Tiziana, 2014. "Individual and Group Behaviour Toward Risk: A Short Survey," MPRA Paper 58079, University Library of Munich, Germany.

    More about this item

    Keywords

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

    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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