Ensthaler, L;
Huck, S;
Leutgeb, J;
(2020)
Games played through agents in the laboratory — a test of Prat & Rustichini's model.
Games and Economic Behavior
, 119
pp. 30-55.
10.1016/j.geb.2019.09.013.
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Abstract
From the regulation of sports to lawmaking in parliament, in many situations one group of people (“agents”) make decisions that affect the payoffs of others (“principals”) who may offer action-contingent transfers in order to sway the agents' decisions. Prat and Rustichini (2003) characterize pure-strategy equilibria of such Games Played Through Agents. Specifically, they predict the equilibrium outcome in pure strategies to be efficient. We test the theory in a series of experimental treatments with human principals and computerized agents. The theory predicts remarkably well which actions and outcomes are implemented but subjects' transfer offers deviate systematically from equilibrium. We show how quantal response equilibrium accounts for the deviations and test its predictions out of sample. Our results show that quantal response equilibrium is particularly well suited for explaining behavior in such games.
| Type: | Article |
|---|---|
| Title: | Games played through agents in the laboratory — a test of Prat & Rustichini's model |
| Open access status: | An open access version is available from UCL Discovery |
| DOI: | 10.1016/j.geb.2019.09.013 |
| Publisher version: | https://doi.org/10.1016/j.geb.2019.09.013 |
| Language: | English |
| Additional information: | This version is the author accepted manuscript. For information on re-use, please refer to the publisher’s terms and conditions. |
| Keywords: | Games played through agents, Experiment, Quantal response equilibrium |
| UCL classification: | UCL UCL > Provost and Vice Provost Offices UCL > Provost and Vice Provost Offices > UCL SLASH UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS UCL > Provost and Vice Provost Offices > UCL SLASH > Faculty of S&HS > Dept of Economics |
| URI: | https://discovery.ucl.ac.uk/id/eprint/10086885 |
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