Work detail

Does Payoff Dominance Matter? An Experiment.

Author: Bc. Michal Polena
Year: 2014 - summer
Leaders: PhDr. Lubomír Cingl Ph.D.
Work type: Bachelors
Language: English
Pages: 56
Awards and prizes:
Abstract: Two selection criteria, a Risk dominance criterion and a Payoff dominance criterion, have been used for explaining outcomes in Stag-hunt games since they were introduced. Schmidt et al. (2003) find out that changes in Risk dominance parameter influence players’ choices but changes in Payoff dominance parameter has no impact on players’ choices. Schmidt et al. (2003)’s findings may hold true for relatively small changes in Payoff dominance parameter but the impact of large changes remain unanswered. The aim of this bachelor thesis is to examine whether large differences in Payoff dominance parameters have an impact on players’ decisions. An experiment with large changes in Payoff dominance parameter will be proposed and conducted in order to answer our research question.




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