NAVIGATING A NONLINEAR ENVIRONMENT - AN EXPERIMENTAL-STUDY OF DECISION-MAKING IN A CHAOTIC SETTING

This paper presents experimental results where subjects are placed in a nonlinear game setting with the potential for chaotic dynamics in be st-responses. We explore what behavior emerges from the nonlinear envi ronment, how players make choices in this complex environment, and wha t strategies are most successful. We find an assortment of dynamic pla y in players' choices, ranging from an emergent leader-follower equili brium to 'chaotic' dynamics. We also find that players who most succes sfully navigated this complex decision environment, achieving the high est payoffs, were those who relied on an incremental search strategy. (C) 1998 Elsevier Science B.V.