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Experiments on strategic choices and markets

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Abstract

Much of experimental research in marketing has focused on individual choices. Yet in many contexts, the outcomes of one’s choices depend on the choices of others. Furthermore, the results obtained in individual decision making context may not be applicable to these strategic choices. In this paper, we discuss three avenues for further advancing our understanding of strategic choices. First, there is a need to develop theories about how people learn to play strategic games. Second, there is an opportunity to enrich standard economic models of strategic behavior by allowing for different types of bounded rationality and by relaxing assumptions about utility formulation. These new models can help us to more accurately predict strategic choices. Finally, future research can improve marketing practice by designing better mechanisms and validating them using experiments.

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Authors and Affiliations

  1. Duke University, Durham, NC, USA

    Wilfred Amaldoss & Preyas Desai

  2. University of California—Berkeley, Berkeley, CA, USA

    Teck-Hua Ho, Ganesh Iyer & John Morgan

  3. University of Michigan, Ann Arbor, MI, USA

    Aradhna Krishna

  4. HP Labs, Palo Alto, CA, USA

    Kay-Yut Chen

  5. Texas A&M University, College Station, TX, USA

    Sanjay Jain

  6. University of Houston, Houston, TX, USA

    Noah Lim

  7. University of California—Santa Cruz, Santa Cruz, CA, USA

    Ryan Oprea

  8. University of Maryland, College Park, MD, USA

    Joydeep Srivasatava

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  1. Wilfred Amaldoss
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  2. Teck-Hua Ho
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  4. Kay-Yut Chen
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  8. Noah Lim
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  9. John Morgan
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  10. Ryan Oprea
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  11. Joydeep Srivasatava
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Correspondence to Wilfred Amaldoss.

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Amaldoss, W., Ho, TH., Krishna, A. et al. Experiments on strategic choices and markets. Mark Lett 19, 417–429 (2008). https://doi.org/10.1007/s11002-008-9040-7

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  • DOI: https://doi.org/10.1007/s11002-008-9040-7

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