The quality of the signal matters - A note on imperfect observability and the timing of moves
In a recent study Huck and Müller (1998) report that--in contrast to Bagwell's (1995) prediction--first movers in a simple experimental market do not lose their commitment power in the presence of noise. The present note shows that it is the quality of the signal and not the knowledge about the physical timing of moves that is responsible for these experimental results. Additionally, the findings reported here provide further evidence that the positional order protocol cannot induce non--equilibrium play.
|Date of creation:||12 Feb 1999|
|Note:||Type of Document - PS; prepared on IBM PC; to print on PostScript; pages: 10 ; figures: included|
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- van Damme, E.E.C. & Hurkens, J.P.M., 1997.
"Games with imperfectly observable commitment,"
Other publications TiSEM
98d6e8cb-38a1-4341-b53e-d, Tilburg University, School of Economics and Management.
- Kyle Bagwell, 1992.
"Commitment and Observability in Games,"
1014, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Steffen Huck & Wieland Mueller, 1998.
"Perfect versus imperfect observability---An experimental test of Bagwell's result,"
- Huck, Steffen & Muller, Wieland, 2000. "Perfect versus Imperfect Observability--An Experimental Test of Bagwell's Result," Games and Economic Behavior, Elsevier, vol. 31(2), pages 174-190, May.
- Cooper, Russell & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1993. "Forward Induction in the Battle-of-the-Sexes Games," American Economic Review, American Economic Association, vol. 83(5), pages 1303-1316, December.
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