13:50 - 15:30
Location: 225 - Floor 1
Chair/s:
Iván Barreda Tarrazona
Susanne Schwarz - "I Knew This Would Happen": Prediction Accuracy, Recall Bias and Retrospective Evaluations of Political Events
Iván Barreda Tarrazona - Myopic behavior in the laboratory: Backward reasoning limitations or strategic uncertainty?
Fantine XIAO - Opening the black box of emotion expression: How anger expression shapes beliefs, attitudes and tastes in negotiation
Alex Davies - Buyer vs. Seller Under Lump-Sum Contracts: Three Experiments on Role-Based Interpretation of Regulatory Language
John Smith - Stochastic choice and noisy beliefs about imperfect perception
Submission 41
Myopic Behavior in the Laboratory: Backward Reasoning Limitations or Strategic Uncertainty?
panel.2-225 - Floor 1-01
Presented by: Iván Barreda Tarrazona
Iván Barreda Tarrazona 1, Stein Ostbye 2
1 Universitat Jaume I
2 University of Tromso
We investigate whether seemingly myopic behavior in a sequential game arises from limitations in backward reasoning or from strategic uncertainty. Building on our previous laboratory implementation of the Core–Periphery model in Economic Geography with four sequential players, we introduce a new treatment in which only the first decision is made by a human, while subsequent decisions are taken by expected payoff maximizing artificial agents. When strategic uncertainty is removed in this setting, 71% of first movers choose the forward-looking migration decision, compared to 45% in the corresponding treatment with four human de-cision makers. The difference indicates that distrust in others’ rationality, rather than cognitive limitations, drives our previously observed shift toward myopic be-havior as the sequence length, and the corresponding number of human decision makers, increases. Moreover, the advantage of higher cognitive ability and eco-nomics training largely disappears once strategic uncertainty is eliminated. These results highlight the behavioral importance of strategic uncertainty in dynamic coordination environments.