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Forward Induction in the Battle-of-the-Sexes Games

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  • Cooper, Russell
  • Douglas V. DeJong
  • Robert Forsythe
  • Thomas W. Ross

Abstract

This paper provides experimental evidence on forward induction as a refinement criterion. In the basic extensive form, one of the two players chooses to play a battle-of-the-sexes game or to receive a certain payoff. According to forward induction, choosing to play the game is a signal about intended action. Though the presence of the outside option changes play, the authors find only limited support for the forward-induction hypothesis. The effects of the outside option also reflect the creation of a focal point through the asymmetry created by offering the outside option to one of the two players. Copyright 1993 by American Economic Association.

Suggested Citation

  • Cooper, Russell & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1993. "Forward Induction in the Battle-of-the-Sexes Games," American Economic Review, American Economic Association, vol. 83(5), pages 1303-1316, December.
  • Handle: RePEc:aea:aecrev:v:83:y:1993:i:5:p:1303-16
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