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Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/59524
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| Title: | Coordination after gains and losses: Is prospect theory’s value function predictive for games? |
| Other Titles: | Koordination nach Gewinnen und Verlusten: Hält die Wertfunktion der Prospekttheorie für strategische Spiele? |
| Authors: | Schade, Christian
Schroeder, Andreas
Krause, Kai Oliver |
| Authors (Email): | Schade, Christian (schade@wiwi.hu-berlin.de)
Schroeder, Andreas (aschroeder-berlin@t-online.de)
Krause, Kai Oliver (kai.oliver.krause@gmx.de) |
| Keywords: | Prospect Game Theory
Prior Outcomes
Coordination
Equilibrium Selection
Economic Experiment |
| Issue Date: | 2010-02 |
| Series/Report no.: | SiAg-Working Paper
08 |
| Abstract: | We analyze the effects of prior gain and loss experiences on individuals’ behavior in two coordination games: battle of the sexes and simultaneous market entry. We propose
subjectively transformed games that integrate elements of prospect theory, aggregation of prior and subsequent payoffs, and social projection. Mathematical predictions of behavior are derived based on equilibrium selection concepts. Males’ behavior in our experimental studies
is largely consistent with our predictions. However, the behavior of many female respondents appears to be rather consistent with interpreting the initial random lottery outcomes used to manipulate prior experiences as a signal for the players’ abilities to compete. This could be
related to females’ known uneasiness of competing against counterparts that might be male and thus, a generally higher salience of rivalry in our incentivized experiments. Females also chose to play far more mixed strategies than males indicating some uncertainty about what type of behavior is appropriate. |
| URI: | http://purl.umn.edu/59524 |
| Institution/Association: | Humboldt University Berlin>Institute for Agricultural Economics and Social Sciences>Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers |
| Total Pages: | 55 |
| Collections: | Structural Change in Agriculture/Strukturwandel im Agrarsektor (SiAg) Working Papers
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