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Risk Aversion in International Relations Theory

O'Neill, Barry - University of Bonn, Germany - 1998

|When international relations theorists use the concept of risk aversion, they usually cite the economics conception involving concave utility functions. However, concavity is meaningful only when the goal is measurable on an interval scale. International decisions are usually not of this type,...

Persistent link: https://www.econbiz.de/10004968215

Learning Direction Theory and the Winner’s Curse

Selten, Reinhard; Abbink, Klaus; Cox, Ricarda - University of Bonn, Germany - 2001

We report an experiment on a decision task by SAMUELSON and BAZERMAN (1985). Subjects submit a bid for an item with an unknown value. A winner’s curse phenomenon arises when subjects bid too high and make losses. Learning direction theory can account for this. However, other influences on...

Persistent link: https://www.econbiz.de/10004989615

Do You Know That I Am Biased? An Experiment

Ludwig, Sandra; Nafziger, Julia - University of Bonn, Germany - 2007

This experiment explores whether individuals know that other people are biased. We confirm that overestimation of abilities is a pervasive problem, but observe that most people are not aware of it, i.e. they think others are unbiased. We investigate several explanations for this result. As a...

Persistent link: https://www.econbiz.de/10004968372

How to Play 3x3-Games A Strategy Method Experiment

Selten, Reinhard; Abbink, Klaus; Buchta, Joachim; … - University of Bonn, Germany - 2000

We report an experiment that uses the strategy method (Selten 1967) to elicit subjects' general strategy for playing any 2-person 3x3-game with integer payoffs between 0 and 99. Each two subjects' strategies play 500000 games in each of the 5 tournaments. For games with pure strategy equilibria...

Persistent link: https://www.econbiz.de/10004968378

Individual Behavior of First-Price Sealed-Bid Auctions: The Importance of Information Feedback in Experimental Markets

Neugebauer, Tibor; Selten, Reinhard - University of Bonn, Germany - 2002

This article reports the results of a first-price sealed-bid auction experiment, which has been designed to test the Nash equilibrium predictions of individual bidding behavior. Subjects faced in 100 auctions always the same resale value and competed with computerized bids. Three treatments were...

Persistent link: https://www.econbiz.de/10004968447

The Impact of Fairness on Decision Making - An Analysis of Different Video Experiments

Hennig-Schmidt, Heike - University of Bonn, Germany - 2000

Experimentally observed deviations of behavior from game theoretic predictions suggest that fairness does influence decision making. Fairness in the sense of equality has become an essential element of economic models aiming at explaining actual behavior (cf. Fehr and Schmidt, 1999; Bolton and...

Persistent link: https://www.econbiz.de/10004968456

Imitation Equilibrium

Selten, Reinhard; Ostmann, Axel - University of Bonn, Germany - 2000

The paper presents the concept of an "imitation equilibrium" and explores it in the context of some simple oligopoly models. The concept applies to normal form games enriched by a "reference structure" specifying a "reference group" for every player. The reference group is a set of other...

Persistent link: https://www.econbiz.de/10004968457

The Janus Face of Cooperation - An Intra- and Cross-Cultural Review

Walkowitz, Gari; Goerg, Sebastian J. - University of Bonn, Germany - 2007

This paper introduces a two-sided methodological framework for studies on cooperation based on a new game design … decision problem. Decision makers can choose an individual level of cooperation from a given range of possible actions … bias applying our framework. Palestinians show a substantially higher cooperation level in the positive externality …

Persistent link: https://www.econbiz.de/10005001495

Experimentally Observed Imitation and Cooperation in Price Competition on the Circle

Selten, Reinhard; Apesteguia, Jose - University of Bonn, Germany - 2002

long as no cooperation is observed. …

Persistent link: https://www.econbiz.de/10005032209

Cooperation as a Result of Learning with Aspiration Levels

Oechssler, Jörg - University of Bonn, Germany - 2001

It is shown that a win-stay, lose-hift behavior rule with endogenous aspiration levels yields cooperation in a certain … prisoner's dilemma and Cournot oligopoly and thus yields an explanation for cooperation and collusion. …

Persistent link: https://www.econbiz.de/10004989619