The Dollar Auction Game: A Laboratory Comparison Between Individuals and Groups

Morone, Andrea; Nuzzo, Simone; Caferra, Rocco

doi:10.1007/s10726-018-9595-5

Cited by 5 publications

(1 citation statement)

References 28 publications

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“…A similar experiment examining the propensity to engage in harmful competition, namely a €1 auction, was conducted by Morone, Nuzzo and Caferra [2019]. Players, playing in pairs (or, in another variant, in two teams), were allowed to declare sums the nearest to 0.01 euro, and the declared amounts were paid by all players.…”

Section: Discussionmentioning

confidence: 99%

Rational and Cooperative Strategies in an Arms Race. Conclusions from Empirical Research

Korkus

2023

Stud. Sieci Uniw. Pogran.

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Goal – this article describes a proposed model of arms race game and the results of its application in an experiment measuring the inclination of human players to participate in a non-productive competition such as an arms race. Research methodology – methods in this research include: designing a game of an arms race based on a prisoner’s dilemma and one dollar auction, theoretical analysis of strategies to determine the best rational strategy for the player, conducting the experiment in various conditions and comparison between theoretical and empirical results. Score/results – the analysis of various strategies showed that the most rational strategy is the minimum expenditure on armaments to allow effective defense against an adversary. The empirical results showed that players spent significantly higher amounts on armaments than theoretical predictions would have assumed, and 15 out of 26 games did not end close to Nash Equilibrum, which showed that the participants did not play according to rational calculation. The ability to communicate effectively resulted in players being more cooperative. In addition, those who said they played computer games performed better than the others, and finance and accounting students were more likely to choose strategies based on competition. The research supports the thesis that people are inclined to compete even when the competition brings them losses. Originality/value – the proposed game of an arms race is a new model, that can be used to simulate an arms race and to measure rationality of human players. The conducted experiments also provide evidence about human behavior regarding choosing cooperation or competition.

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Section: Discussionmentioning

confidence: 99%

Rational and Cooperative Strategies in an Arms Race. Conclusions from Empirical Research

Korkus

2023

Stud. Sieci Uniw. Pogran.

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Does communicating within a team influence individuals’ reasoning and decisions?

2022

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In recent years, experimental economics has seen a rise in the collection and analysis of choice-process data, such as team communication transcripts. The main purpose of this paper is to understand whether the collection of team communication data influences how individuals reason and behave as they enter the team deliberation process, i.e. before any communication exchange. Such an influence would imply that team setups have limited validity to speak to individual reasoning processes. Our treatment manipulations allow us to isolate the effects of (1) belonging to a team, (2) actively suggesting an action to the team partner, and (3) justifying the suggestion in a written text to the team partner. Across three different tasks, we find no systematic evidence of changed suggestions and altered individual sophistication due to changes in aspects (1)–(3) of our experimental design. We thus find no threat to said validity of team setups. In addition to investigating how the team setup affects individual behavior before communication, we also investigate the sophistication of decisions after the communication. We find that sophisticated strategies are more persuasive than unsophisticated strategies, especially when communication includes written justifications, thereby explaining why teams are more sophisticated and proving rich communication to be fruitful.

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Social interactions and asset pricing bubbles

Steiger

Pelster

2020

Journal of Economic Behavior & Organization

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The Dollar Auction Game: A Laboratory Comparison Between Individuals and Groups

Cited by 5 publications

References 28 publications

Rational and Cooperative Strategies in an Arms Race. Conclusions from Empirical Research

Rational and Cooperative Strategies in an Arms Race. Conclusions from Empirical Research

Does communicating within a team influence individuals’ reasoning and decisions?

Social interactions and asset pricing bubbles

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