A Simple Questionnaire Can Change Everything: Are Strategy Choices in the Coordination and Ultimatum Games Stable?

• Published in: 2015 IEEE International Conference on Smart City/SocialCom/SustainCom (SmartCity) pp. 452 - 456
• Main Authors: Berninghaus, Siegfried K., Todorova, Lora R., Vogt, Bodo
• Format: Conference Proceeding
• Language: English
• Published: IEEE 01.12.2015
• Subjects: beliefs; Conferences; coordination game; Economics; Finance; Games; questionnaire; Remuneration; risk preferences; risk scale; ultimatum game; uncertain preferences; Uncertainty
• DOI: 10.1109/SmartCity.2015.112

This paper presents the results of an experiment designed to study the effect produced on strategy choices when a subject reports risk preferences on a risk scale before engaging in a 2 × 2 coordination game and in an ultimatum game. The main finding is that the act of stating one's own risk preferences significantly alters strategic behavior in the two games. In particular, subjects tend to choose the risk dominant strategy in the coordination game more often when they have previously stated their attitudes to risk. We also find that self-reporting risk preferences significantly decreases the proposers' offers in the ultimatum game.