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Passing the Buck On the acceptance of responsibility

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  • Bolle, Friedel

Abstract

In the Passing the Buck game, the n members of a group decide in a given order whether or not to incur costs so that they can fix a certain problem for the benefit of the group. Passing the Buck means that one relies on the service of a successor. The decision is influenced by social preferences and by strategic considerations. We derive three main conclusions from experiments with n=3 and n=4. (i) The unique perfect Baysian equilibrium of the Passing the Buck game with incomplete information about the preferences of other players generally fits the data, however with two interesting exceptions. (ii) Backward induction breaks down if it requires more than two steps, i.e., for the first player in the game with n=4. (iii) Making one of the members of the group an “expert” who alone is competent to fix the problem is connected with a change of social preferences.

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  • Bolle, Friedel, 2017. "Passing the Buck On the acceptance of responsibility," Research in Economics, Elsevier, vol. 71(1), pages 86-101.
  • Handle: RePEc:eee:reecon:v:71:y:2017:i:1:p:86-101
    DOI: 10.1016/j.rie.2016.07.003
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    Cited by:

    1. Shakun D. Mago & Jennifer Pate, 2023. "Greed and fear: Competitive and charitable priming in a threshold volunteer's dilemma," Economic Inquiry, Western Economic Association International, vol. 61(1), pages 138-161, January.
    2. Friedel Bolle & Philipp E. Otto, 2022. "Voting behavior under outside pressure: promoting true majorities with sequential voting?," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 58(4), pages 711-740, May.

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