Loss aversion in asymmetric anti‐coordination games.

This paper studies theoretically and experimentally how the possibility of a negative payoff to one player in 2‐by‐2 hawk‐dove games affects the strategic behavior of both players. Exposing column players to a possibility of negative payoff allows us to examine if row players can anticipate the colu...

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Publicado en:Southern Economic Journal Vol. 88; no. 4; pp. 1549 - 1574
Autores principales: Wen, Yuanji, Masschelein, Stijn, Ratan, Anmol
Formato: Artículo
Publicado: Wiley-Blackwell Apr2022
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Apr2022
      vid: 88
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      pub: Wiley-Blackwell
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        156163629
        10.1002/soej.12563
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      tig:
        atl: Loss aversion in asymmetric anti‐coordination games.
      aug:
        au:
          Wen, Yuanji
          Masschelein, Stijn
          Ratan, Anmol
        affil:
          Accounting and Finance, UWA Business School, University of Western Australia, Perth Western Australia,, Australia
          Department of Economics, Monash University, Clayton Victoria,, Australia
      su:
        Games
        Loss aversion
        Strategy games
        Treatment effectiveness
      sug:
        subj:
          Games
          Doll, Toy, and Game Manufacturing
          Hobby, Toy, and Game Stores
          Toy and Hobby Goods and Supplies Merchant Wholesalers
          Loss aversion
          Strategy games
          Treatment effectiveness
      keyword:
        asymmetric hawk‐dove games
        level‐k model
        loss aversion
        reference point
        asymmetric hawk‐dove games
        level‐k model
        loss aversion
        reference point
      ab: This paper studies theoretically and experimentally how the possibility of a negative payoff to one player in 2‐by‐2 hawk‐dove games affects the strategic behavior of both players. Exposing column players to a possibility of negative payoff allows us to examine if row players can anticipate the column players' loss aversion. A level‐k model with loss averse agents predicts treatment effects across two versions of hawk‐dove games with and without losses. Our data support a direct effect of loss aversion and fail to support the anticipation of loss aversion. Specifically, the column players in the treatment group are more likely to play Dove when they face losses; while, only few untreated participants acting as row players seem to anticipate such increased propensity of choosing Dove by their opponents. Further, a time effect is documented and found to be explained by increases in participants' depths of strategic reasoning over time.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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