Centipede Game
What Is the Centipede Game?
The centipede game is a broad structure game in game theory in which two players alternately have an opportunity to take the bigger share of a gradually expanding money stash. It is organized so that in the event that a player passes the reserve to their rival who, takes the reserve, the player receives a smaller amount than if they had taken the pot.
The centipede game finishes up when a player takes the reserve, with that player getting the bigger portion and the other player getting the smaller portion. The game has a predefined total number of rounds, which are known to every player in advance.
Understanding the Centipede Game
While not too known as the acclaimed [Prisoner's Dilemma](/detainees dilemma), the centipede game likewise features the conflict between self-interest and mutual benefit with which individuals need to hook. It was first presented by economist Robert W. Rosenthal in 1982. The "centipede game" is purported on the grounds that its original rendition comprised of a 100-move sequence.
For instance, consider the accompanying rendition of the centipede game including two players, Jack and Jill. The game beginnings with a total $2 payoff. Jack goes first, and needs to choose if he ought to "take" the payoff or "pass." If he takes, then he gets $2 and Jill gets $0, yet assuming he passes, the decision to "take or pass" presently must be made by Jill. The payoff is presently increased by $2 to $4; assuming Jill takes, she gets $3 and Jack gets $1, yet in the event that she passes, Jack will choose whether to take or pass. Assuming that she passes, the payoff is increased by $2 to $6; in the event that Jack takes, he would get $4, and Jill would get $2. Assuming he passes and Jill takes, the payoff increments by $2 to $8, and Jack would get $3 while Jill got $5.
The game go on in this vein. For each round n, the players alternate choosing whether or not to claim the prize of n+1, leaving the other player with a reward of n-1.
Assuming the two players generally decide to pass, the game go on until the 100th round, when Jill receives $101 and Jack receives $99. Since Jack would have received $100 on the off chance that he had ended the game at the 99th round, he would have had a financial incentive to end the game prior.
What really does game theory anticipate? Utilizing backward induction — the most common way of thinking backward from the finish of an issue — game theory predicts that Jack (or the primary player) will decide to take on the absolute first move and receive a $2 payoff.
In experimental studies, be that as it may, just a tiny percentage of subjects decided to take on the absolute first move. This disparity could have several clarifications. One explanation is that certain individuals are philanthropic, and would like to help out the other player by continuously passing, as opposed to bringing down the pot.
Another explanation is that individuals may essentially be unequipped for making the logical thinking important to pursue the rational decision anticipated by the Nash equilibrium. The way that couple of individuals take the reserve on the absolute first move isn't too is to be expected, given the small size of the starting payoff when compared with the rising payoffs as the game advances.
Features
- It is a creative approach to the conflict between self-interest and mutual benefit.
- In many renditions, the centipede game ends after a fixed number of rounds, giving an incentive to players to end the game.
- The centipede game is a game where two players alternate to take a share of a consistently expanding sum of money.
- Albeit game theory proposes that self-interested players ought to end the game early, genuine trials will generally go on for surprisingly lengthy.
- In the original form of the centipede game, the players alternate choosing whether to claim the bigger share of a consistently expanding pot.
