|
EconStor >
Karlsruher Institut für Technologie (KIT) >
Fakultät für Wirtschaftswissenschaften, Karlsruher Institut für Technologie (KIT) >
Working Paper Series in Economics, Karlsruher Institut für Technologie (KIT) >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/60195
|
| | |
| Title: | | Backward induction or forward reasoning? An experiment of stochastic alternating offer bargaining  |
| Authors: | | Berninghaus, Siegfried K. Güth, Werner Schosser, Stephan |
| Issue Date: | | 2012 |
| Series/Report no.: | | Working Paper series in economics 42 |
| Abstract: | | Bounded rationality questions backward induction, which however, does not exclude such reasoning when anticipation is easy. In our stochastic (alternating offer) bargaining experiment, there is a certain first-period pie and a known finite deadline. What is uncertain (except for the final period) is whether there is a further period. Whereas backward induction requires information about all later pie sizes and probabilities, forward reasoning is expected to consider only the immediate prospects. Rather than relying only on decision data, we try to assess the cognitive approach such as forward reasoning of backward induction by control of information retrieval. We find that participants who begin with the shortest games before playing possibly longer games, initially resort to backward induction before switching to forward-looking behavior. |
| Subjects: | | backward induction forward reasoning bargaining |
| JEL: | | C70 C72 C91 |
| Document Type: | | Working Paper |
| Appears in Collections: | | Working Paper Series in Economics, Karlsruher Institut für Technologie (KIT)
|
| |
| | |
Download bibliographical data as:
BibTeX
|
| |
Share on:http://hdl.handle.net/10419/60195
|
Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.
|