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Do people make strategic commitments? Experimental evidence on strategic information avoidance

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  • Anders Poulsen
  • Michael Roos

Abstract

Game theory predicts that players make strategic commitments that may appear counter-intuitive. We conducted an experiment to see if people make a counter-intuitive but strategically optimal decision to avoid information. The experiment is based on a sequential Nash demand game in which a responding player can commit ahead of the game not to see what a proposing player demanded. Our data show that subjects do, but only after substantial time, learn to make the optimal strategic commitment. We find only weak evidence of physical timing effects.
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  • Anders Poulsen & Michael Roos, 2010. "Do people make strategic commitments? Experimental evidence on strategic information avoidance," Experimental Economics, Springer;Economic Science Association, vol. 13(2), pages 206-225, June.
    • Handle: RePEc:kap:expeco:v:13:y:2010:i:2:p:206-225
    DOI: 10.1007/s10683-010-9236-6
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    Citations

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    Cited by:

    1. Guilhem Lecouteux, 2013. "Choosing one's preferences," Working Papers hal-00864704, HAL.
    2. Nielsen, Kirby, 2020. "Preferences for the resolution of uncertainty and the timing of information," Journal of Economic Theory, Elsevier, vol. 189(C).
    3. Silvia Dominguez Martinez & Randolph Sloof & Ferdinand von Siemens, 2010. "Monitoring your Friends, not your Foes: Strategic Ignorance and the Delegation of Real Authority," Tinbergen Institute Discussion Papers 10-101/1, Tinbergen Institute.
    4. Conrads, Julian & Irlenbusch, Bernd, 2013. "Strategic ignorance in ultimatum bargaining," Journal of Economic Behavior & Organization, Elsevier, vol. 92(C), pages 104-115.
    5. Russell Golman & David Hagmann & George Loewenstein, 2017. "Information Avoidance," Journal of Economic Literature, American Economic Association, vol. 55(1), pages 96-135, March.
    6. Luis Alejandro Palacio García & Alexandra Cortés Aguilar & Manuel Muñoz-Herrera, 2015. "The bargaining power of commitment: An experiment of the effects of threats in the sequential hawk–dove game," Rationality and Society, , vol. 27(3), pages 283-308, August.
    7. Marcus Roel & Manuel Staab, 2021. "The benefits of being misinformed," AMSE Working Papers 2108, Aix-Marseille School of Economics, France.
    8. Daniele Nosenzo & Martin Sefton, 2011. "Endogenous Move Structure and Voluntary Provision of Public Goods: Theory and Experiment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 721-754, October.
    9. Daniele Nosenzo & Martin Sefton, 2011. "Endogenous Move Structure and Voluntary Provision of Public Goods: Theory and Experiment," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 13(5), pages 721-754, October.
    10. Luis Alejandro Palacio Garcia & Brayan Snehider Díaz, 2022. "Comunicación, jugadas estratégicas y compromiso: un análisis desde la economía experimental," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, vol. 41(73), pages 17-42, February.
    11. Dominguez-Martinez, Silvia & Sloof, Randolph & von Siemens, Ferdinand A., 2014. "Monitored by your friends, not your foes: Strategic ignorance and the delegation of real authority," Games and Economic Behavior, Elsevier, vol. 85(C), pages 289-305.
    12. François Cochard & Julie Le Gallo & Laurent Franckx, 2015. "Regulation Of Pollution In The Laboratory: Random Inspections, Ambient Inspections, And Commitment Problems," Bulletin of Economic Research, Wiley Blackwell, vol. 67(S1), pages 40-73, December.
    13. Conrads, Julian & Irlenbusch, Bernd, 2011. "Strategic Ignorance in Bargaining," IZA Discussion Papers 6087, Institute of Labor Economics (IZA).

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    More about this item

    Keywords

    Strategic commitment; Commitment; Bargaining; Strategic value of information; Physical timing effects; Endogenous timing; Experiment; C72; C78; C90; C92; D63; D80;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C78 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Bargaining Theory; Matching Theory
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • D80 - Microeconomics - - Information, Knowledge, and Uncertainty - - - General

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