Representation effects in the centipede game

PLoS One. 2018 Oct 4;13(10):e0204422. doi: 10.1371/journal.pone.0204422. eCollection 2018.

Abstract

We explore the effects on strategic behavior of alternative representations of a centipede game that differ in terms of complexity. In a laboratory experiment, we manipulate the way in which payoffs are presented to subjects in two different ways. In both cases, information is made less accessible relative to the standard representation of the game. Results show that these manipulations shift the distribution of take nodes further away from the equilibrium prediction. The evidence is consistent with the view that failures of game-form recognition and the resulting limits to strategic reasoning are crucial for explaining non-equilibrium behavior in the centipede game.

Publication types

  • Research Support, Non-U.S. Gov't

MeSH terms

  • Adolescent
  • Adult
  • Decision Making*
  • Female
  • Game Theory
  • Games, Experimental*
  • Humans
  • Male
  • Models, Theoretical
  • Perception*
  • Recognition, Psychology
  • Young Adult

Grants and funding

The study was funded by internal funds of (now closed) Max Planck Insitute für Ökonomik in Jena, Germany—ESI, Strategic INteraction Group: http://www.econ.mpg.de/english/.