Hostname: page-component-7b9c58cd5d-6tpvb Total loading time: 0 Render date: 2025-03-17T05:29:36.704Z Has data issue: false hasContentIssue false
  • English
  • Français

Hot vs. Cold: Sequential Responses and Preference Stability in Experimental Games

Published online by Cambridge University Press:  14 March 2025

Jordi Brandts  and
Gary Charness
Jordi Brandts*
Affiliation:
Instituto de Análisis Económico (CSIC), Barcelona
Gary Charness*
Affiliation:
Universitat Pompeu Fabra, Barcelona
*
email: brandts@cc.uab.es
email: charness@upf.es
Get access Rights & Permissions [Opens in a new window]

Abstract

In experiments with two-person sequential games we analyze whether responses to favorable and unfavorable actions depend on the elicitation procedure. In our “hot” treatment the second player responds to the first player's observed action while in our “cold” treatment we follow the “strategy method” and have the second player decide on a contingent action for each and every possible first player move, without first observing this move. Our analysis centers on the degree to which subjects deviate from the maximization of their pecuniary rewards, as a response to others’ actions. Our results show no difference in behavior between the two treatments. We also find evidence of the stability of subjects’ preferences with respect to their behavior over time and to the consistency of their choices as first and second mover.

Keywords

experimentscooperationstrategy method

JEL classification

C92: Laboratory, Group Behavior
Type
Research Article
Information
Experimental Economics , Volume 2 , Issue 3 , March 2000 , pp. 227 - 238
Copyright
Copyright © 1999 Economic Science Association

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Boles, T. and Messick, D. (1990). “Accepting Unfairness: Temporal Influence on Choice.” In K. Borcherding, O.Google Scholar
Larichev, , and Messick, D. (eds.), Comtemporary Issues in Decision Making. Elsevier, North-Holland.Google Scholar
Bolton, G. and Ockenfels, A. (1997). “ERC: A Theory of Equity, Reciprocity, and Competition.” Mimeo. Brandts, J. and Sola, C. (1998). “Reference Points and Negative Reciprocity in Simple Sequential Games.” Mimeo. Camerer, C., Knez, M., and Weber, R. (1996). “Timing and Virtual Observability in Ultimatum Bargaining and ‘Weak Link’ Coordination Games.” Mimeo.Google Scholar
Cason, T. and Mui, V-L. (forthcoming). “Social Influence in the Sequential Dictator Game.” Journal of Mathematical Psychology.Google Scholar
Charness, G. and Rabin, M. (1999). “Social Preferences: Some Simple Tests and a New Model.” Mimeo.Google Scholar
Croson, R. (1997). “The Disjunction Effect and Nonconsequential Reasoning in Dominant Strategy Games: Extensions and Limitations.” Mimeo.Google Scholar
Fehr, E. and Schmidt, K. (1997). “A Theory of Fairness, Competition, and Cooperation.” Mimeo.Google Scholar
Glasnapp, D. and Poggio, J. (1985). Essentials of Statistical Analysis for the Behavioral Sciences. Merrill, Columbus.Google Scholar
Guth, W., Huck, S., and Muller, W. (1999). “The Relevance of Equal Splits: On a Behavioral Discontinuity in Ultimatum Games.” Mimeo.Google Scholar
Loewenstein, G. (1996). “Out of Control: Visceral Influences on Behavior.” Organizational Behavior and Human Decision Processes. 65, 272–292.CrossRefGoogle Scholar
Nozick, R. (1969). “Newcomb's Problem and Two Principles of Choice.” In Rescher, N., (ed.), Essays in Honor of Carl. G. Hempel. pp. 115–146.Google Scholar
Rabin, M. (1993). “Incorporating Fairness into Game Theory and Economics.” American Economic Review. 83, 1281–1302.Google Scholar
Rapoport, A. (1997). “Order of Play in Strategically Equivalent Games in Extensive Form.” International Journal of Game Theory. 26, 113–136.CrossRefGoogle Scholar
Roth, A. (1995). “Bargaining Experiments.” In Kageland, J. Roth, A., (eds.), Handbook of Experimental Economics. pp. 253–348.CrossRefGoogle Scholar
Savage, L. (1954). The Foundations of Statistics. Wiley, New York.Google Scholar
Schotter, A., Weigelt, K., and Wilson, C. (1994). “A Laboratory Investigation of Multiperson Rationality and Presentation Effects.” Games and Economic Behavior. 6, 445–468.CrossRefGoogle Scholar
Selten, R. (1967). “Die Strategiemethode zur Erforschung des Eingeschrankt Rationalen Verhaltens im Rahmen eines Oligopolexperiments.” In Sauermann, H., (ed.), Beitrage zur Experimentellen Wirtschaftsforschung. pp. 136–168.Google Scholar
Shafir, E. and Tversky, A. (1992), “Thinking through Uncertainty: Nonconsequentalist Reasoning and Choice.” Cognitive Psychology. 24, 449–474.CrossRefGoogle ScholarPubMed
Tversky, A. and Shafir, E. (1992). “The Disjunction Effect in Choice under Uncertainty.” Psychological Science. 3, 305–309.CrossRefGoogle Scholar