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Centipede Game Todd Kaplan. Centipede Game Rosenthal (1981), What has the highest payoffs? What is the subgame-perfect equilibrium?

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Presentation on theme: "Centipede Game Todd Kaplan. Centipede Game Rosenthal (1981), What has the highest payoffs? What is the subgame-perfect equilibrium?"— Presentation transcript:

1 Centipede Game Todd Kaplan

2 Centipede Game Rosenthal (1981), What has the highest payoffs? What is the subgame-perfect equilibrium?

3 Self-Interest Hurts Binmore (2005) exchange of goods between parties that distrust each other. Mating behavior of an hermaphroditic sea bass which take turns exchanging eggs to fertilize.

4 Outcomes People tend to continue farther than one would think. Perhaps some players are altruistic. – Best to continue then. Perhaps some players are irrational. – Best to be irrational as well. Palacios-Huerta and Volij (2009) chess players play stop earlier the higher their rating (and that of their opponents). All Grandmasters in the experiment stopped at their first chance.


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