In addition to receiving a description of the payoff function (Equation 1), individuals were also given a payoff table
indicating their payoff for each level of private contribution and a level of aggregate contributions by others.
The first, we construct a payoff table
The payoff table
for each game you play will be shown on your computer screen.
To see the advantage of being the leader in a Stackelberg game, consider a simple game with the payoff table
as shown in figure 3.
In my previous column (Jan/Feb 2005, The Physician Executive), I discussed the use of the payoff table
as a tool to assist in making rational choices when faced with this uncertainty.
Subjects use the average payoff table
window to select their choices.
Experimental subjects were confronted with identical payoffs: 50 cents for each player whenever the first mover chose [bar]T (corresponds to choosing alternative A in the experimental payoff table
in Appendix C); $1.
A built-in payoff table
sets the amount a player gets for a given winning combination.
In the first part of the experiment, subjects were given a Payoff Table
showing the individual profits accruing to any participant as a function of the number of entrants and then asked to make only an entry decision.
This problem is also apparent in Holt's payoff table
, where any output pair summing to 24 constitutes a CCE with a profit level of 45.
Each party's payoff table
has roughly 200 possible combinations of X and Y over which he or she can bargain.