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STRENGTHS OF THE ``WEAKEST LINK''?
Category: Econometrics
HOUSEHOLD BEHAVIOUR II Tuesday 27th August 2002, 09:30 - 11:00, Room: 4.11
Session Chair(s):
Laurent Linnemer, CREST-LEI and University of Lille 2, FRANCE
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Abstract:
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The TV show the Weakest Link involves a kind of paradox. To
increase the probability of winning, contestants should eliminate
the strongest player. However, if it is anticipated, then no one answers and there is
nothing to gain. In life, players do answer: does it reveal lack of rationality? We solve a
simple game that illustrates the tradeoffs to show that two
kinds of equilibria may coexist: equilibria in which players stay
mute and entertaining equilibria in which they give good answers
whenever they can. Empirically, we study the first wave of the
show broadcasted in France. Contestants vote against the
weakest link and answer truthfully to the questions. However,
they exhibit myopic behavior as they do not use all the available
information. A coordination problem arises in the
voting game. The mise en scene of the show prevents the
contestants from voting against the strongest and thus the show
can go on.
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Find this file in the \Papers\1327\ folder of this CD-ROM.
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