Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/162517 
Year of Publication: 
2017
Series/Report no.: 
Discussion Paper No. 23
Publisher: 
Ludwig-Maximilians-Universität München und Humboldt-Universität zu Berlin, Collaborative Research Center Transregio 190 - Rationality and Competition, München und Berlin
Abstract: 
Evidence from studies in international relations, the politics of reform, collective action and price competition suggests that economic agents in social dilemma situations cooperate more to avoid losses than in the pursuit of gains. To test whether the prospect of losses can induce cooperation, we let experimental subjects play the travelers dilemma in the gain and loss domain. Subjects cooperate substantially more over losses. Furthermore, our results suggest that this treatment effect is best explained by reference-dependent risk preferences and reference-dependent strategic sophistication. We discuss the implications of our results and relate our findings to other experimental games played in the loss domain.
Subjects: 
travelers dilemma
loss domain
diminishing sensitivity
strategic sophistication
JEL: 
C90
D01
D03
D81
Document Type: 
Working Paper

Files in This Item:
File
Size
414.79 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.