High Quality Content by WIKIPEDIA articles! In game theory, the centipede game, first introduced by Rosenthal (1981), is an extensive form game in which two players take turns choosing either to take a slightly larger share of a slowly increasing pot, or to pass the pot to the other player. The payoffs are arranged so that if one passes the pot to one's opponent and the opponent takes the pot on the next round, one receives slightly less than if one had taken the pot on this round. Although the traditional centipede game had a limit of 100 rounds (hence the name), any game with this structure but a different number of rounds is called a centipede game. The unique subgame perfect equilibrium (and every Nash equilibrium) of these games indicates that the first player take the pot on the very first round of the game; however in empirical tests relatively few players do so, and as a result achieve a higher payoff than the payoff predicted by the equilibria analysis. These results are...

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