Loss avoidance as selection principle: evidence from simple stag-hunt games

We investigate experimentally the conjecture that loss avoidance solves the tension in stag-hunt games for which payoff dominance and risk dominance make conflicting predictions. Contrary to received textbook wisdom, money-losing outcomes do shift behavior, albeit not strongly, toward the payoff-dominant equilibrium.

MoreLess

Year of publication:	2004-12
Authors:	Rydval, Ondrej ; Ortmann, Andreas
Institutions:	Center for Economic Research and Graduate Education and Economics Institute (CERGE-EI)
Subject:	Loss avoidance \| Selection principle \| Stag-hunt games \| Coordination games \| Experiment

More details

Extent:	application/pdf
Series:	CERGE-EI Working Papers.
Type of publication:	Book / Working Paper
Classification:	C72 - Noncooperative Games ; C9 - Design of Experiments ; D9 - Intertemporal Choice and Growth ; D84 - Expectations; Speculations
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005146518