An experimental analysis of risk effects in attacker‐defender games.

This paper reports results of two‐person games in which a defender chooses between high and low alert states, and an attacker chooses whether to attack or wait. Low alerts and attacks are risky because successful attacks are costly for the defender and failed attacks are costly for the attacker. The...

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Published in:Southern Economic Journal Vol. 89; no. 1; pp. 185 - 216
Main Authors: Holt, Charles A., Sahu, Ricky, Smith, Angela M.
Format: Article
Published: Wiley-Blackwell Jul2022
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Jul2022
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      pub: Wiley-Blackwell
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        157892640
        10.1002/soej.12574
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      tig:
        atl: An experimental analysis of risk effects in attacker‐defender games.
      aug:
        au:
          Holt, Charles A.
          Sahu, Ricky
          Smith, Angela M.
        affil:
          Department of Economics, University of Virginia, Charlottesville Virginia,, USA
          1UpHealth, Boston Massachusetts,, USA
          Department of Economics, James Madison University, Harrisonburg Virginia,, USA
      su:
        Risk aversion
        Games
        Risk assessment
        Nash equilibrium
        Probability theory
      sug:
        subj:
          Risk aversion
          Games
          Doll, Toy, and Game Manufacturing
          Toy and Hobby Goods and Supplies Merchant Wholesalers
          Hobby, Toy, and Game Stores
          Risk assessment
          Nash equilibrium
          Probability theory
      keyword:
        attacker‐defender games
        bilateral conflict
        quantal response equilibrium
        risk aversion
        attacker‐defender games
        bilateral conflict
        quantal response equilibrium
        risk aversion
      ab: This paper reports results of two‐person games in which a defender chooses between high and low alert states, and an attacker chooses whether to attack or wait. Low alerts and attacks are risky because successful attacks are costly for the defender and failed attacks are costly for the attacker. The Nash equilibrium, even allowing for risk aversion, has the stark property that a reduction in the attacker's cost has no effect on the attack probability. In contrast, high attack costs are associated with lower attack rates in a laboratory experiment conducted with monetary payoffs. The empirical analysis is focused on explaining strategic behavior as it is affected by risk aversion and behavioral "noise" in strategic best responses. A model incorporating both of these features outperforms others. Generalized comparative static results for changes in attack costs and risk aversion are proved in the context of a nonparametric quantal response equilibrium.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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