4 ms·
I don’t think the claim is exceptional, but I’d love to see more studies on this. Check out the Centipede Game (https://en.m.wikipedia.org/wiki/Centipede_game h
by throwaway37585 8y ago
I don’t think the claim is exceptional, but I’d love to see more studies on this. Check out the Centipede Game (https://en.m.wikipedia.org/wiki/Centipede_game https://en.m.wikipedia.org/wiki/Centipede_game):
“Parco, Rapoport and Stein (2002) illustrated that the level of financial incentives can have a profound effect on the outcome in a three-player game: the larger the incentives are for deviation, the greater propensity for learning behavior in a repeated single-play experimental design to move toward the Nash equilibrium.”
I recall reading somewhere that people also behave more rationally in other games like the Dictator Game (and exhibit fewer cognitive biases) when the stakes are higher, but can’t remember where.
- dEnigma 8y agoThe Nash equilibrium in this case being immediately taking the larger stash, instead of waiting (or even cooperating) with the other player for much higher payouts.
- afpx 8y agoWhat would the game’s results be if the financial incentives were unknown and/or highly variable? That’s more like real life.