King of the Hill: Giving Backward Induction Its Best Shot

25 Pages Posted: 14 Dec 2016  

Martin Dufwenberg

University of Arizona - Department of Economics

Matt Van Essen

University of Alabama

Date Written: November 08, 2016

Abstract

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.

Keywords: backward induction, interactive epistemology, player set cardinality, experiment

JEL Classification: C720, C920

Suggested Citation

Dufwenberg, Martin and Van Essen, Matt, King of the Hill: Giving Backward Induction Its Best Shot (November 08, 2016). CESifo Working Paper Series No. 6169. Available at SSRN: https://ssrn.com/abstract=2885243

Martin Dufwenberg (Contact Author)

University of Arizona - Department of Economics ( email )

McClelland Hall
Tucson, AZ 85721-0108
United States

Matt Van Essen

University of Alabama ( email )

101 Paul W. Bryant Dr.
Box 870382
Tuscaloosa, AL 35487
United States

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