Can tournaments induce rational play in the centipede game? Exploring dominance vs. strategic uncertainty

We compare behavior in a one-shot Centipede game across several payoff structures including nonlinear payoff tournaments. Assuming Nash to be optimal, results suggest nonlinear tournament payoffs based on overall relative rewards are not sufficient to increase Nash results in the one-shot Centipede style setting. Evidence suggests that reducing strategic uncertainty is more important than increasing dominance in promoting Nash play.

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Year of publication:	2009
Authors:	Mcintosh, Christopher R ; Shogren, Jason F ; Moravec, Andrew J
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 29.2009, 3, p. 2018-2024
Publisher:	AccessEcon
Subject:	Centipede game \| payoff tournaments \| experiment \| strategic uncertainty \| dominance

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	C7 - Game Theory and Bargaining Theory ; C9 - Design of Experiments
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10008563072