Unequal outside options in the lost wallet game

Maroš Servátka*, Radovan Vadovič

*Corresponding author for this work

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Experimental evidence suggests the size of the foregone outside option of the first mover does not affect the behavior of the second mover in the lost wallet game. In this paper we experimentally compare the behavior of subjects when they face an outside option with unequal payoffs, i.e., the first mover gets 10 and the second mover gets 0, and when they face an outside option with equal payoffs, i.e., both get 5. Consistent with the most of the literature we do not find a significant difference in behavior of second movers.

Original languageEnglish
Pages (from-to)2870-2883
Number of pages14
JournalEconomics Bulletin
Volume29
Issue number4
Publication statusPublished - 2009
Externally publishedYes

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