When best-replies are not in equilibrium: understanding cooperative behaviour
To understand cooperative behaviour in social-dilemma experiments, we need to understand the game participants play not only in monetary but in preference terms. Does a Nash-prediction based on participants' actual preferences describe their behaviour in a public-good experiment well? And if not, where does the observed behaviour diverge from the prediction? This study provides an environment which allows to answer these questions: when making their contribution decision, participants are informed about their co-playersÕ priorly-elicited conditional contribution preferences. This induces common knowledge of preferences and thereby leads to direct experimental control over the game participants play. Results show that most people play best-responses to their beliefs. At the same time, beliefs in a third of the cases do not correspond to an equilibrium prediction that is based on the elicited conditional-cooperation preferences. Moreover, more often than not, beliefs are empirically inaccurate. This holds true even in a treatment that gives participants the option to look up the set of equilibria of their game.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: +41-71-677 05 10
Fax: +41-71-677 05 11
Web page: http://www.twi-kreuzlingen.ch/
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.:
- Andreas Nicklisch & Irenaeus Wolff, 2012.
"On the Nature of Reciprocity: Evidence from the Ultimatum Reciprocity Measure,"
Working Paper Series of the Department of Economics, University of Konstanz
2012-27, Department of Economics, University of Konstanz.
- Nicklisch, Andreas & Wolff, Irenaeus, 2012. "On the nature of reciprocity: Evidence from the ultimatum reciprocity measure," Journal of Economic Behavior & Organization, Elsevier, vol. 84(3), pages 892-905.
- Andreas Nicklisch & Irenaeus Wolff, 2012. "On the Nature of Reciprocity: Evidence from the Ultimatum Reciprocity Measure," TWI Research Paper Series 79, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
- Andreas Nicklisch & Irenaeus Wolff, 2011. "On the Nature of Reciprocity: Evidence from the Ultimatum Reciprocity Measure," TWI Research Paper Series 65, Thurgauer Wirtschaftsinstitut, Universität Konstanz.
When requesting a correction, please mention this item's handle: RePEc:twi:respas:0088. 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: (Ulrich Wacker)The email address of this maintainer does not seem to be valid anymore. Please ask Ulrich Wacker to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.