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Using the experimental sessions of Goeree and Holt (2005), we show that step thinking fits the long-run outcome of minimum-effort and median-effort games surprisingly well for all values of the cost parameter. In the latter, the predicted discontinuous behaviour of step thinking accommodates the...
Persistent link: https://www.econbiz.de/10010678832
We experimentally analyse simultaneous behaviour in a contest game and a public good game, whose endowment is shared. Competition for resources (i) almost eliminates overbidding, without affecting public good contributions and (ii) almost eliminates the behavioural spillovers between the games.
Persistent link: https://www.econbiz.de/10010681777