Preferences-dependent learning in the centipede game: The persistence of mistrust

Gamba, Astrid; Regner, Tobias

doi:10.1016/j.euroecorev.2019.103316

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2022

2024

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Cited by 3 publications

(1 citation statement)

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“…But in the case where the mean node decreased or increased, it occurred especially during the beginning of the experiment and it stabilized at the end of the 50 games. Similar results were obtained in Gamba and Regner (2019, [5]) and Krockow et al…”

Section: Puzzlesupporting

confidence: 90%

Altruism and Ambiguity in the Centipede game

Béla¹

2022

Preprint

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Beyond the fact that players don’t take at the first node, the experimental literature on the centipede game has highlighted a number of puzzles that neither the standard rational approach or existing behavioural theories can perfectly explain. In this paper, I propose a model of heterogeneous levels of altruism and ambiguity to shed light on these puzzles and explain the experimental data. This model yields a unique equilibrium in which players use pure strategies. Furthermore, a uniform distribution of altruism and ambiguity fits better the centipede game behaviours than the two-player type model of McKelvey and Palfrey (1992). To best fit the data, around 90% of the players should be modelled as ambiguity-averse and only 10% as altruistic.

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Section: Puzzlesupporting

confidence: 90%