Individual Characteristics and Behavior in Repeated Games: An Experimental Study

Date: 2014-10
By: Douglas Davis (Virginia Commonwealth University)
Asen Ivanov (Queen Mary University of London)
Oleg Korenok (Virginia Commonwealth University)
URL: http://d.repec.org/n?u=RePEc:qmw:qmwecw:wp728&r=net
Using a laboratory experiment, we investigate whether a variety of behaviors in repeated games are related to an array of individual characteristics that are popular in economics: risk attitude, time preference, trust, trustworthiness, altruism, strategic skills in one-shot matrix games, compliance with first-order stochastic dominance, ability to plan ahead, and gender. We do find some systematic relationships. A subject’s patience, gender, altruism, and compliance with first-order stochastic dominance have some limited systematic effects on her behavior in repeated games. At the level of a pair of subjects who are playing a repeated game, each subject’s patience, gender, and ability to choose an available dominant strategy in a one-shot matrix game systematically affect the frequency of the cooperate-cooperate outcome. However, overall, the number of systematic relationships is surprisingly small.
Keywords: Experiment, Repeated game, Individual characteristics
JEL: C91 C92 D03 D70