Abstract
The experimental literature on individual choice has repeatedly documented how seemingly-irrelevant options systematically shift decision-makers’ choices. However, little is known about such effects in strategic interactions. We experimentally examine whether adding seemingly-irrelevant strategies, such as a dominated strategy or a duplicate of an existing strategy, affects players’ behavior in simultaneous games. In coordination games, we find that adding a dominated strategy increases the likelihood that players choose the strategy which dominates it, and duplicating a strategy increases its choice share; The players’ opponents seem to internalize this behavior and best respond to it. In single-equilibrium games, these effects disappear. Consequently, we suggest that irrelevant strategies affect behavior only when they serve a strategic purpose. We discuss different theoretical approaches that accommodate the effect of salience and may explain our findings.
Original language | English |
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Pages (from-to) | 1142-1184 |
Number of pages | 43 |
Journal | Experimental Economics |
Volume | 26 |
Issue number | 5 |
DOIs | |
State | Published - Nov 2023 |
Bibliographical note
Publisher Copyright:© 2023, The Author(s), under exclusive licence to Economic Science Association.
Keywords
- Asymmetric dominance effect
- Coordination
- Dominated strategy
- Experiment
- Level-k
- Salience
ASJC Scopus subject areas
- Economics, Econometrics and Finance (miscellaneous)