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Do People Make Strategic Commitments? Experimental Evidence on Strategic Information Avoidance

  • Anders Poulsen

    (School of Economics, University of East Anglia)

  • Michael Roos

    (Ruhr-Universitaet Bochum
    School of Economics, University of East Anglia)

Game theory predicts that players make strategic commitments that may appear counter-intuitive. We conducted an experiment to see if people make a counter-intuitive but strategically optimal decision to avoid information. The experiment is based on a sequential Nash demand game in which a responding player can commit ahead of the game not to see what a proposing player demanded. Our data show that subjects do, but only after substantial time, learn to make the optimal strategic commitment. We find only weak evidence of physical timing effects.

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File URL: http://www.uea.ac.uk/menu/depts/eco/research/RePEc/uea/papers_pdf/UEA-AFE-007.pdf
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Paper provided by School of Economics, University of East Anglia, Norwich, UK. in its series University of East Anglia Applied and Financial Economics Working Paper Series with number 007.

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Date of creation: 23 Apr 2010
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Handle: RePEc:uea:aepppr:2010_7
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