Morone, Andrea and Morone, Piergiuseppe (2012): Individual and group behaviours in the traveller’s dilemma: an experimental study.
Download (375kB) | Preview
This paper provides an experimental test of the traveller’s dilemma using individual and group data. Our investigation aims to address three fundamental research questions, which can be summarised as follows: (i) claims are affected by the size of the penalty/reward; (ii) individual decisions differ significantly from group decisions; (iii) individual claims are affected by the induction of a focal point a là Schelling. Experimental findings reported in this paper provide answers to each of these questions showing that: (i) although the size of the penalty/reward did not affect subject choices in the first-period, it played a key role in determining subjects’ behaviour in the repeated game; (ii) overall, groups behave more rationally, in the sense that they were always closer to the Nash equilibrium; (iii) the reference point did not encourage coordination around the Pareto optimal choice.
|Item Type:||MPRA Paper|
|Original Title:||Individual and group behaviours in the traveller’s dilemma: an experimental study|
|Keywords:||traveller’s dilemma; focal point; individual and group decision|
|Subjects:||D - Microeconomics > D7 - Analysis of Collective Decision-Making > D70 - General
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C92 - Laboratory, Group Behavior
C - Mathematical and Quantitative Methods > C9 - Design of Experiments > C91 - Laboratory, Individual Behavior
|Depositing User:||Andrea Morone|
|Date Deposited:||19 Apr 2012 12:54|
|Last Modified:||08 Feb 2016 11:19|
Andreoni, J., and Petrie, R., (2008). “Beauty, gender and stereotypes: Evidence from laboratory experiments”, Journal of Economic Psychology, Elsevier, vol. 29(1), pages 73-93.
Basu, K. (1994). “The Traveler’s Dilemma: Paradoxes of Rationality in Game Theory”, American Economic Review, 84(2), 391-395.
Basu, K., L. Becchetti and L. Stanca (2011). “Experiments with the traveler's dilemma: welfare, strategic choice and implicit collusion”, Social choice and welfare, 37: 575-595.
Becker, T., M. Carter and J. Naeve (2005). “Experts playing the traveler’s dilemma” Department of Economics – working paper Nr. 252/2005, University of Hohenheim, Germany.
Bateman, I. and A. Munro (2005). “An Experiment on Risky Choice Amongst Households”, Economic Journal, 115(502) : 176-189.
Bone, J, (1998). “Risk-sharing CARA individuals are collectively EU”, Economics Letters, 58(3): 311-317.
Bone, J., J.D. Hey and J. Suckling (1999). “Are Groups More (or Less) Consistent Than Individuals?”, Journal of Risk and Uncertainty, 18(1): 63-81.
Bornstein, G. and I. Yaniv (1998). “Individual and Group Behavior in the Ultimatum Game: Are Groups More ‘Rational’ Players?” Experimental Economics, 1(1): 101-108.
Bornstein, G., T. Kugler and A. Ziegelmeyer (2004). “Individual and Group Decisions in the Centipede Game: Are Groups More ‘Rational’ Players?” Journal of Experimental Social Psychology, 40(5): 599-605.
Bosman, R., and F. van Winden (2002). “Emotional Hazard in a Power-to- Take experiment”, Economic Journal, 112: 147-169.
Bosman, R., M. Sutter and F. van Winden (2005). “The impact of real effort and emotions in the power-to-take game”, Journal of Economic Psychology, 26: 407-429.
Brañas-Garza, P., M.P. Espinosa, P. Rey-Biel (2011). “Travelers’ types”, Journal of Economic Behavior and Organization, 78: 25–36.
Cabrera, S., M. Capra and R. Gómez (2007). “Behavior in one-shot traveler’s dilemma games: model and experiment with advice”, Spanish Economic Review, 9(2): 129-152.
Capra, C.M., J.K. Goeree, R. Gmez and C.A. Holt (1999). “Anomalous behavior in a traveler’s dilemma?” American Economic Review, 89(3): 678-690.
Cason, T. N. and V. Mui (1997). “A Laboratory Study of Group Polarisation in the Team Dictator Game”, Economic Journal, 107(444): 1465-83.
Cherry, T.L., P. Frykblom and J.F. Shogren (2002). “Hardnose the Dictator.” American Economic Review, 92:1218-21.
Chakravarty, S., E. Dechenaux and J. Roy (2010). “Ill-defined versus Precise Pre-play Communication in the Traveler's Dilemma”, Southern Economic Journal, 77(2): 351-368.
Cooper, D. J. and J. H. Kagel, (2005). “Are Two Heads Better Than One? Team versus Individual Play in Signaling Games”, American Economic Review, 95(3): 477-509.
Guth, W., and A. Ortmam (2006). “A behavioral approach to distribution and bargaining”, in: Handbook of contemporary behavioral economics: foundations and developments, M. Altman (ed.), Armonk, New York.
Fischbacher, U. (2007). “z-Tree: Zurich toolbox for ready-made economic experiments” Experimental Economics, 10: 171-178
Hayne, S. and J. Cox (2006). “Barking Up the Right Tree: Are Small Groups Rational Agents?”, Experimental Economics, 9: 209-222.
Keynes, J.M. (1936). The General Theory of Employment, Interest and Money, New York: Harcourt Brace and Co.
Kocher, M. G., M. and Sutte (2005). “The Decision Maker Matters: Individual Versus Group Behaviour in Experimental Beauty-Contest Games”, Economic Journal, 115(500): 200-223.
Kocher, M. G., and M. Sutter (2007), “Individual versus group behavior and the role of the decision making procedure in gift-exchange experiments”, Empirica, 34(1): 63-88.
Masclet, D., N. Colombier, L. Denant-Boemont and Y. Lohéac (2009). “Group and individual risk preferences: A lottery-choice experiment with self-employed and salaried workers”, Journal of Economic Behavior & Organization, 70(3): 470-484.
McKelvey, R. and T. Palfrey (1992). “An experimental study of the centipede game”, Econometrica 60(4): 803-836.
Morone, A. and P. Morone (2008). “Guessing Games and People Behaviours: What Can we Learn?”, in: M. Abdellaboui and J.D. Hey (eds.), Advances in Decision Making under Risk and Uncertainty, Springer.
Morone, A. and P. Morone (2010). “Boundary and interior equilibria: what drives convergence in a p-beauty contest?”, Economics Bulletin, 30(3): 2097-2106.
Morone, A. and P. Morone (2012). “Are small groups Expected Utility?”, mimeo.
Morone, A., S. Sandri and T. Uske (2008), “On the absorbability of the Guessing Game Theory - A Theoretical and Experimental Analysis”, in: A. Innocenti and P. Sbriglia (eds.), Games, Rationality and Behaviour, Palgrave.
Moulin, H. (1986) Game Theory for the Social Sciences (2nd ed.). New York: NYU Press.
Nagel, R. (1995). “Unraveling in Guessing Games: An Experimental Study”, American Economic Review, 85(5): 1313-1326.
Nagel, R. and F.F. Tang (1998). “An Experimental Study on the Centipede Game in Normal Form: An Investigation on Learning”, Journal of Mathematical Psychology, 42(2-3): 356-384.
Palacios-Huerta, I. and O. Volij (2009). “Field Centipedes”, American Economic Review, 99(4): 1619-1635.
Rubinstein A. (2006). “Dilemmas of an economic theorist.” Econometrica, 74: 865-884
Rosenthal, R. (1981). “Games of Perfect Information, Predatory Pricing, and the Chain Store”, Journal of Economic Theory, 25(1): 92-100.
Sutter, M. (2005). “Are four heads better than two? An experimental beauty-contest game with teams of different size," Economics Letters, 88(1): 41-46.
Schelling, T.C. (1980). The strategy of conflict, Cambridge: Harvard University Press.
Shupp, R. and A.W. Williams (2008). “Risk preference differentials of small groups and individuals”, Economic Journal, 118(525) 258-283.