Forward Induction in the Battle-of-the-Sexes Games

Russell Cooper, Douglas V. DeJong, Robert Forsythe () and Thomas Ross

American Economic Review, 1993, vol. 83, issue 5, 1303-16

Abstract: This paper provides experimental evidence on forward induction as a refinement criterion. In the basic extensive form, one of the two players chooses to play a battle-of-the-sexes game or to receive a certain payoff. According to forward induction, choosing to play the game is a signal about intended action. Though the presence of the outside option changes play, the authors find only limited support for the forward-induction hypothesis. The effects of the outside option also reflect the creation of a focal point through the asymmetry created by offering the outside option to one of the two players. Copyright 1993 by American Economic Association.

Date: 1993
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Working Paper: Forward Induction in the Battle of Sexes Games (1991)
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