Operations, Information and Decisions Papers

Document Type

Journal Article

Date of this Version

1-2008

Publication Source

Games and Economic Behavior

Volume

62

Issue

1

Start Page

263

Last Page

286

DOI

10.1016/j.geb.2007.03.010

Abstract

Standard economic models assume that the weight given to information from different sources depends exclusively on its diagnosticity. In this paper we study whether the same piece of information is weighted more heavily simply because it arose from direct experience rather than from observation. We investigate this possibility by conducting repeated game experiments in which groups of players are randomly rematched on every round and receive feedback about the actions and outcomes of all players. We find that participants' actions are influenced more strongly by the behavior of players they directly interact with than by those they only observe.

Copyright/Permission Statement

© . This manuscript version is made available under the CC-BY-NC-ND 4.0 license http://creativecommons.org/licenses/by-nc-nd/4.0/

Keywords

experiential learning, observational learning, repeated games, prisoner dilemma, weak-link, behavioral economics

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Date Posted: 27 November 2017

This document has been peer reviewed.