Anchors of strategic reasoning in the traveler’s dilemma

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 191
Issue: C
Pages: 28-38

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We experimentally study players’ initial beliefs about non-strategic play that anchors their strategic reasoning in the traveler’ s dilemma, a game in which each player chooses a number and has the incentive to undercut their opponent by the minimal amount possible. In a within-subject design, each subject repeatedly plays variations of the traveler’ s dilemma game without feedback. To identify their strategic reasoning, we vary the upper and lower bounds of the strategy space in each round, and also vary the reward/penalty for undercutting. We find that players are both heterogeneous in the amount that they reason, and in their beliefs about non-strategic play. Notably, few players anchor their strategic reasoning on non-strategic uniform random play. We also find ample evidence of non-strategic play. Our results caution against the common practice of assuming the same anchor of initial reasoning for all players when estimating players’ depths of strategic reasoning.

Technical Details

RePEc Handle
repec:eee:jeborg:v:191:y:2021:i:c:p:28-38
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25