Levitt, Steven D.; List, John A.; Sadoff, Sally E. - In: American Economic Review 101 (2011) 2, pp. 975-90
Although backward induction is a cornerstone of game theory, most laboratory experiments have found that agents are not able to successfully backward induct. We analyze the play of world-class chess players in the centipede game, which is ill-suited for testing backward induction, and in pure...