Availability of Information and Representation Effects in the Centipede Game
The paper presents the results of a novel experiment testing the effects of environment complexity on strategic behavior, using a centipede game. Behavior in the centipede game has been explained either by appealing to failures of backward induction or by calling for preferences that induce equilibria consistent with observed behavior. By manipulating the way in which information is provided to subjects we show that reduced availability of information is sufficient to shift the distribution of take-nodes further from the equilibrium prediction. On the other hand, similar results are obtained in a treatment where reduced availability of information is combined with an attempt to elicit preferences for reciprocity, through the presentation of the centipede as a repeated trust game. Our results could be interpreted as cognitive limitations being more effective than preferences in determining (shifts in) behavior in our experimental centipede. Furthermore our results are at odds with the recent ones in Cox and James (2012), suggesting caution in generalizing their results. Reducing the availability of information may hamper backward induction or induce myopic behavior, depending on the strategic environment.
|Date of creation:||11 Sep 2012|
|Contact details of provider:|| Postal: Carl-Zeiss-Strasse 3, 07743 JENA|
Phone: +049 3641/ 9 43000
Fax: +049 3641/ 9 43000
Web page: http://www.jenecon.de
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Giovanna Devetag & Massimo Warglien, 2002.
"Games and Phone Numbers: Do Short Term Memory Bounds Affect Strategy Behavior?,"
ROCK Working Papers
018, Department of Computer and Management Sciences, University of Trento, Italy, revised 13 Jun 2008.
- Devetag, Giovanna & Warglien, Massimo, 2003. "Games and phone numbers: Do short-term memory bounds affect strategic behavior?," Journal of Economic Psychology, Elsevier, vol. 24(2), pages 189-202, April.
- Maria Giovanna Devetag & Massimo Warglien, 2002. "Games and phone numbers: do short term memory bounds affect strategic behavior?," CEEL Working Papers 0211, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
- Rapoport, Amnon & Stein, William E. & Parco, James E. & Nicholas, Thomas E., 2003. "Equilibrium play and adaptive learning in a three-person centipede game," Games and Economic Behavior, Elsevier, vol. 43(2), pages 239-265, May.
- Zauner, Klaus G., 1999. "A Payoff Uncertainty Explanation of Results in Experimental Centipede Games," Games and Economic Behavior, Elsevier, vol. 26(1), pages 157-185, January.
- Duffy, Sean & Smith, John, 2011.
"Cognitive load in the multi-player prisoner's dilemma game,"
30856, University Library of Munich, Germany.
- Duffy, Sean & Smith, John, 2012. "Cognitive load in the multi-player prisoner's dilemma game," MPRA Paper 35906, University Library of Munich, Germany.
- Ponti, Giovanni, 2000.
"Cycles of Learning in the Centipede Game,"
Games and Economic Behavior,
Elsevier, vol. 30(1), pages 115-141, January.
- Giovanni Ponti, 1996. "Cycles of Learning in the Centipede Game," Discussion Papers 96-22 ISSN 1350-6722, University College London, Department of Economics.
- Giovanni Ponti, "undated". "Cycles Of Learning In The Centipede Game," ELSE working papers 024, ESRC Centre on Economics Learning and Social Evolution.
- Cappelletti, Dominique & Güth, Werner & Ploner, Matteo, 2011. "Being of two minds: Ultimatum offers under cognitive constraints," Journal of Economic Psychology, Elsevier, vol. 32(6), pages 940-950.
- Steven D. Levitt & John A. List & Sally E. Sadoff, 2011.
"Checkmate: Exploring Backward Induction among Chess Players,"
American Economic Review,
American Economic Association, vol. 101(2), pages 975-990, April.
- Steven D. Levitt & John A. List & Sally E. Sadoff, 2009. "Checkmate: Exploring Backward Induction Among Chess Players," NBER Working Papers 15610, National Bureau of Economic Research, Inc.
- Steven Levitt & John List & Sally Sadoff, 2010. "Checkmate: Exploring backward induction among chess players," Artefactual Field Experiments 00081, The Field Experiments Website.
- Ignacio Palacios-Huerta & Oscar Volij, 2009.
American Economic Review,
American Economic Association, vol. 99(4), pages 1619-1635, September.
- Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer;Economic Science Association, vol. 10(2), pages 171-178, June.
- repec:feb:artefa:0097 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:jrp:jrpwrp:2012-051. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Markus Pasche)
If references are entirely missing, you can add them using this form.