Ricerc@Sapienza

The project aims at exploring a fundamental issue in strategic decision making, namely the behavioral relevance of Backward Induction, BI, and Forward Induction Reasoning, FIR via a novel experimental design based on the ''Acquiring-a-Company'' game (Bazerman and Samuelson 1983; Samuelson and Bazerman, 1985), which will be modified by adding an initial outside option. This design will allow to get new insights on the effects of private information and signaling on the empirical differences between BI and FIR.