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| View Poll Results: All in or call? | |||
| All in |
   
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37 | 57.81% |
| Call |
  
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27 | 42.19% |
| Voters: 64. You may not vote on this poll | |||
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#1
08-07-2006, 06:10 PM
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An Economics Experiment (test your intuition)
Rules:
5 players Each player is given a unique x-y coordinate grid from 0,100 and 0,100. The other players CANNOT see each other's payoff grid. At each point on the grid is a payout. Ex. player 1 has $5 at (25,50). The payout is a function of distance from a given point. For example, player 1 is paid $5 at (25,50) and is paid exponentially less at a given distance from that point. Perhaps (10,50) pays $1 for player1. The actual numbers and function do not matter, just use them as an idea. Here is the chart showing maximum payoffs for each player.  OBJECT OF THE GAME: The game begins on (0,0). Any player may nominate a point to move to. A majority vote moves the game to that point. Any player may nominate the game to end at any given point. A unanimous decision ends the game and each player will be paid according to his own payoff chart. Discussion allowed: anything goes, but no threats, and no player may mention his payoff sheet numbers. MAX TOTAL PAYOFF for group means just that. The sum of players 1-5 payoff is maximized at that point. 
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#5
08-07-2006, 06:38 PM
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Re: An Economics Experiment (test your intuition)
[ QUOTE ]
A majority vote moves the game to that point. Any player may nominate the game to end at any given point. A unanimous decision ends the game and each player will be paid according to his own payoff chart. [/ QUOTE ] Seems like a lone dissenter can use his veto power to end the game in order to undermine the majority move rule.
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#6
08-07-2006, 07:29 PM
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Re: An Economics Experiment (test your intuition)
[ QUOTE ]
[ QUOTE ] A majority vote moves the game to that point. Any player may nominate the game to end at any given point. A unanimous decision ends the game and each player will be paid according to his own payoff chart. [/ QUOTE ] Seems like a lone dissenter can use his veto power to end the game in order to undermine the majority move rule. [/ QUOTE ] He could vote to never end the game, but in practice this is not in his best interest.
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#8
08-08-2006, 02:27 PM
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Re: An Economics Experiment (test your intuition)
I would think it most likely the group would end at player 1's point. Since the group is unable to mention their payout and their grid location, the majority would always want to move right and left, until they hit point one. Once they hit point 1, player 1 will no longer vote to move up or right, so movement will cease.
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#9
08-08-2006, 02:45 PM
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Re: An Economics Experiment (test your intuition)
[ QUOTE ]
You've got it backwards. He could play according to game theory, but in real life it would usually be -EV. [/ QUOTE ] This is actually a real life experiment that has been run many many times. So no, I don't have it backwards. [img]/images/graemlins/tongue.gif[/img]
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#10
08-08-2006, 03:38 PM
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Re: An Economics Experiment (test your intuition)
It seems like player 1 should dominate this, as weather the payout is above, below or left or right of his payout he will always be able to find two allies to vote to bring it closer to him in some way or another. Without him a majority for an actual move can't be established without another player voluntarily sacrificing some EV.
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