 Who acts more like a game theorist? Group and individual play in a sequential market game and the effect of the time horizonWieland Müller and Fangfang Tan Games and Economic Behavior, 2013, vol. 82, issue C, 658-674 Abstract: Previous experimental results on one-shot sequential two-player games show that group decisions are closer to the subgame-perfect Nash equilibrium than individual decisions. We extend the analysis of intergroup versus interindividual decision-making by running both one-shot and repeated sessions of a simple two-player sequential market game (Stackelberg duopoly). Whereas in one-shot markets we find no significant differences in the behavior of groups and individuals, in repeated markets we find that the behavior of groups is further away from the subgame-perfect equilibrium of the stage game than that of individuals. To a large extent, this result is independent of the method of eliciting choices (sequential or strategy method), the matching protocol (random- or fixed-matching), and the econometric method used to account for observed first- and second-mover behavior. We discuss various possible explanations for the differential effect that the time horizon of interaction has on the extent of individual and group playersʼ (non)conformity with subgame perfectness. Keywords: Stackelberg market; Groups versus individuals; Discontinuity effect; Experiment (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:82:y:2013:i:c:p:658-674 DOI: 10.1016/j.geb.2013.09.007 Access Statistics for this article Games and Economic Behavior is currently edited by E. Kalai More articles in Games and Economic Behavior from Elsevier |
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