Open AccessRepresentation effects in the centipede game
Author(s) -
Paolo Crosetto,
Marco Mantovani
Publication year - 2018
Publication title -
plos one
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.99
H-Index - 332
ISSN - 1932-6203
DOI - 10.1371/journal.pone.0204422
Subject(s) - representation (politics) , computer science , mathematical economics , game theory , sequential game , extensive form game , centipede , repeated game , cognitive psychology , artificial intelligence , theoretical computer science , mathematics , ecology , psychology , biology , politics , political science , law
We explore the effects on strategic behavior of alternative representations of a centipede game that differ in terms of complexity. In a laboratory experiment, we manipulate the way in which payoffs are presented to subjects in two different ways. In both cases, information is made less accessible relative to the standard representation of the game. Results show that these manipulations shift the distribution of take nodes further away from the equilibrium prediction. The evidence is consistent with the view that failures of game-form recognition and the resulting limits to strategic reasoning are crucial for explaining non-equilibrium behavior in the centipede game.