Personality Traits and Strategic Behaviour: Anxiousness, Agressiveness and Entry Games

Economics

Speaker:Nir Vulkan, University of Oxford
Date: Friday 2 November 2012
Time: 16.15
Location: Matrix Lecture Theatre, Building One

Further details

This paper demonstrates experimentally that the players' personality has a systematic effect on their' strategic behavior. We focus on two facets of the Big-5 Neuroticism domain: anxiousness and aggressiveness. We consider a 2-player symmetric entry game, where each player can guarantee a certain payoff by staying out, a higher payoff if she is the only player to enter, but a lower payoff if both players enter. We obtain the following results: (1) anxious players are less likely to enter in the game than non-anxious players; (2) aggressive players are more likely to enter than non-aggressive players; (3) players are more likely to enter against anxious players, less so against randomly chosen players and even less against non-anxious players; and (4) players are less likely to enter against aggressive players, more so against randomly chosen players and even more against non-aggressive players. We discuss the possible mechanism through which personality affects strategic behavior.