King of the Hill: Giving Backward Induction its Best Shot
CESifo, Munich, 2016
CESifo Working Paper No. 6169
We study a class of deceptively similar games, which however have different player sets and predictions that vary with their cardinality. The economic, biological, political, and psychological applications are many. The game-theoretic principles involved are compelling as predictions rely on weaker and less controversial epistemic foundations than needed to justify backward inductions more generally. Is the account empirically relevant? We design and report results from a relevant experiment.
Behavioural Economics
Empirical and Theoretical Methods