THE IDEA

Take now or pass a larger pot along?

The centipede game makes the tension between immediate advantage and mutually growing gains visible one move at a time.

Inside this model

The initial pot is 4 and doubles after each pass. Taking pays the mover 80% and the other player 20%. The opponent independently passes at the chosen probability. A user pass prompts one opponent choice; at the final permitted decision the active player takes automatically. The plot compares pot size and the payoff for taking at each node.

Out in the world

A practical use

In a collaboration, each side may want the other to make one more investment while retaining the option to claim the current return.

WHERE IT BREAKS

A useful lens. Not a universal law.

  • The partner is a fixed stochastic policy, not a strategic learner. This short game is a teaching variant of a broader family of centipede payoff schedules.

Further reading

Explore the original research or the teaching reference behind this experiment.

Robert Rosenthal — Games of perfect information, predatory pricing and the chain-store paradox ↗