Relative versus absolute speed of adjustment in strategic environments: Responder behavior in ultimatum games

David J. Cooper, Nick Feltovich, Alvin E. Roth, Rami Zwick

Research output: Contribution to journalArticleResearchpeer-review

20 Citations (Scopus)

Abstract

Learning models predict that the relative speed at which players in a game adjust their behavior has a critical influence on long term behavior. In an ultimatum game, the prediction is that proposers learn not to make small offers faster than responders learn not to reject them. We experimentally test whether relative speed of learning has the predicted effect, by manipulating the amount of experience accumulated by proposers and responders. The experiment allows the predicted learning by responders to be observed, for the first time.

Original languageEnglish
Pages (from-to)181-207
Number of pages27
JournalExperimental Economics
Volume6
Issue number2
DOIs
Publication statusPublished - 1 Oct 2003
Externally publishedYes

Keywords

  • Bargaining
  • Game Theory
  • Learning

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