To Spin or Not to Spin? Natural and Laboratory Experiments from 'the Price is Right'

26 Pages Posted: 4 Dec 2002

See all articles by Rafael Tenorio

Rafael Tenorio

DePaul University - Department of Economics

Timothy N. Cason

Purdue University - Krannert School of Management

Abstract

'The Wheel' is a sequential game of perfect information played twice during each taping of the television game show 'The Price is Right'. This game has simple rules and the stakes are high. We derive the unique subgame perfect Nash equilibrium (USPNE) for 'The Wheel' and test its predictive ability using data from both the television show and laboratory plays of this game. We find that contestants frequently deviate from the USPNE when the decisions are difficult. The pattern of these deviations is (a) largely independent of the stakes of the game, and (b) consistent with a psychological bias of the omission-commission type.

Suggested Citation

Tenorio, Rafael and Cason, Timothy N., To Spin or Not to Spin? Natural and Laboratory Experiments from 'the Price is Right'. The Economic Journal, Vol. 112, pp. 170-195, 2002. Available at SSRN: https://ssrn.com/abstract=308904

Rafael Tenorio (Contact Author)

DePaul University - Department of Economics ( email )

1 E. Jackson Blvd. - Suite 6200
Chicago, IL 60604
United States
312-362-8309 (Phone)
312-362-5452 (Fax)

Timothy N. Cason

Purdue University - Krannert School of Management ( email )

1310 Krannert Building
West Lafayette, IN 47907-1310
United States
765-494-1737 (Phone)

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