IDEAS home Printed from https://ideas.repec.org/p/hal/journl/hal-04550734.html
   My bibliography  Save this paper

Invariance of equilibrium to the strategy method I: theory

Author

Listed:
  • Daniel L. Chen

    (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)

  • Martin Schonger

    (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich])

Abstract

This article highlights a potential and significant economic–theoretical bias in the widely used strategy method (SM) technique. Although SM is commonly employed to analyze numerous observations per subject regarding rare or off-equilibrium behaviors unattainable through direct elicitation (DE), researchers often overlook a critical distinction. The strategic equivalence between SM and DE is applicable in the context of monetary payoff games, but not in the actual utility-based games played by participants. This oversight may lead to inaccurate conclusions and demand a reevaluation of existing research in the field. We formalize the mapping from the monetary payoff game to this actual game and delineate necessary and sufficient conditions for strategic equivalence to apply.

Suggested Citation

  • Daniel L. Chen & Martin Schonger, 2023. "Invariance of equilibrium to the strategy method I: theory," Post-Print hal-04550734, HAL.
    • Handle: RePEc:hal:journl:hal-04550734
    DOI: 10.1007/s40881-023-00145-3
    Note: View the original document on HAL open archive server: https://hal.science/hal-04550734v1
    as

    Download full text from publisher

    File URL: https://hal.science/hal-04550734v1/document
    Download Restriction: no
    File URL: https://libkey.io/10.1007/s40881-023-00145-3?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Leopoldo Fergusson & José-Alberto Guerra & James A. Robinson, 2024. "Anti-social norms," NBER Working Papers 32717, National Bureau of Economic Research, Inc.
      • Fergusson, Leopoldo & Guerra, José-Alberto & Robinson, James A., 2024. "Anti-social norms," Documentos CEDE 21159, Universidad de los Andes, Facultad de Economía, CEDE.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:hal-04550734. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.