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Public Statistics and Private Experience: Varying Feedback Information in a Take-or-Pass Game

Author

Listed:
  • Danz David

    (WZB and TU Berlin,Berlin, Germany)

  • Jehiel Philippe

    (PSE and UCL,Washington, United States of America)

  • Huck Steffen

    (WZB and UCL,Washington, United States of America)

Abstract

We study how subjects in an experiment use different forms of public information about their opponents’ past behavior. In the absence of public information, subjects appear to use rather detailed statistics summarizing their private experiences. If they have additional public information, they make use of this information even if it is less precise than their own private statistics - except for very high stakes. Making public information more precise has two consequences: It is also used when the stakes are very high and it reduces the number of subjects who ignore any information - public and private. That is, precise public information crowds in the use of own information. Finally, our results shed some light on unraveling in centipede games.

Suggested Citation

  • Danz David & Jehiel Philippe & Huck Steffen, 2016. "Public Statistics and Private Experience: Varying Feedback Information in a Take-or-Pass Game," German Economic Review, De Gruyter, vol. 17(3), pages 359-377, August.
    • Handle: RePEc:bpj:germec:v:17:y:2016:i:3:p:359-377
    DOI: 10.1111/geer.12098
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    References listed on IDEAS

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    Cited by:

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    2. Huck, Steffen & Lünser, Gabriele K. & Tyran, Jean-Robert, 2012. "Competition fosters trust," Games and Economic Behavior, Elsevier, vol. 76(1), pages 195-209.
    3. Gamba, Astrid & Regner, Tobias, 2019. "Preferences-dependent learning in the centipede game: The persistence of mistrust," European Economic Review, Elsevier, vol. 120(C).
    4. Astrid Gamba & Tobias Regner, 2015. "Preferences-dependent learning in the Centipede game," Jena Economics Research Papers 2015-012, Friedrich-Schiller-University Jena.
    5. Keser Claudia & Gaudeul Alexia, 2016. "Foreword: Special Issue in Honor of Reinhard Selten’s 85th Birthday," German Economic Review, De Gruyter, vol. 17(3), pages 277-283, August.
    6. Philippe Jehiel, 2022. "Analogy-Based Expectation Equilibrium and Related Concepts:Theory, Applications, and Beyond," Working Papers halshs-03735680, HAL.
    7. Luay M. Assidmi & Erin Wolgamuth, 2017. "Uncovering the Dynamics of the Saudi Youth Unemployment Crisis," Systemic Practice and Action Research, Springer, vol. 30(2), pages 173-186, April.

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    More about this item

    Keywords

    Backward induction; analogy-based expectation equilibrium; learning; experiment;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D84 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Expectations; Speculations

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