Empirical Results
Several studies have demonstrated that the Nash equilibrium (and likewise, subgame perfect equilibrium) play is rarely observed. Instead, subjects regularly show partial cooperation, playing "R" (or "r") for several moves before eventually choosing "D" (or "d"). It is also rare for subjects to cooperate through the whole game. For examples see McKelvey and Palfrey (1992) and Nagel and Tang (1998). As in many other game theoretic experiments, scholars have investigated the effect of increasing the stakes. As with other games, for instance the ultimatum game, as the stakes increase the play approaches (but does not reach) Nash equilibrium play.
Read more about this topic: Centipede Game (game Theory)
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