Coordination failure caused by sunspots

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Coordination failure caused by sunspots. / Beugnot, Julie ; Gürgüç , Zeynep ; Øvlisen, Frederik Roose; Roos , Michael M. W. .

I: Economics Bulletin, Bind 32, Nr. 4, 2012, s. 2860-2869.

Publikation: Bidrag til tidsskrift › Tidsskriftartikel › Forskning › fagfællebedømt

Harvard

Beugnot, J, Gürgüç , Z, Øvlisen, FR & Roos , MMW 2012, 'Coordination failure caused by sunspots', Economics Bulletin, bind 32, nr. 4, s. 2860-2869.

APA

Beugnot, J., Gürgüç , Z., Øvlisen, F. R., & Roos , M. M. W. (2012). Coordination failure caused by sunspots. Economics Bulletin, 32(4), 2860-2869.

Vancouver

Beugnot J, Gürgüç Z, Øvlisen FR, Roos MMW. Coordination failure caused by sunspots. Economics Bulletin. 2012;32(4):2860-2869.

Author

Beugnot, Julie ; Gürgüç , Zeynep ; Øvlisen, Frederik Roose ; Roos , Michael M. W. . / Coordination failure caused by sunspots. I: Economics Bulletin. 2012 ; Bind 32, Nr. 4. s. 2860-2869.

Bibtex

@article{5abdb850b99d46e18c837b4eefa821b2,
title = "Coordination failure caused by sunspots",
abstract = "In a coordination game with Pareto-ranked equilibria, we study whether a sunspot can lead to either coordination on an inferior equilibrium (mis-coordination) or to out-of equilibrium behavior (dis-coordination). While much of the literature searches for mechanisms to attain coordination on the efficient equilibrium, we consider sunspots as a potential reason for coordination failure. We conduct an experiment with a three player 2x2x2 game in which coordination on the efficient equilibrium is easy and should normally occur. In the control session, we find almost perfect coordination on the payoff-dominant equilibrium, but in the sunspot treatment, dis-coordination is frequent. Sunspots lead to significant inefficiency, and we conclude that sunspots can indeed cause coordination failure.",
keywords = "Faculty of Social Sciences, sunspots, coordination game, multiple Pareto-ranked equilibria, experiment",
author = "Julie Beugnot and Zeynep G{\"u}rg{\"u}{\c c} and {\O}vlisen, {Frederik Roose} and Roos, {Michael M. W.}",
note = "Jel classification: C9; C7 ",
year = "2012",
language = "English",
volume = "32",
pages = "2860--2869",
journal = "Economics Bulletin",
issn = "1545-2921",
publisher = "Economics Bulletin",
number = "4",

}

RIS

TY - JOUR

T1 - Coordination failure caused by sunspots

AU - Beugnot, Julie

AU - Gürgüç , Zeynep

AU - Øvlisen, Frederik Roose

AU - Roos , Michael M. W.

N1 - Jel classification: C9; C7

PY - 2012

Y1 - 2012

N2 - In a coordination game with Pareto-ranked equilibria, we study whether a sunspot can lead to either coordination on an inferior equilibrium (mis-coordination) or to out-of equilibrium behavior (dis-coordination). While much of the literature searches for mechanisms to attain coordination on the efficient equilibrium, we consider sunspots as a potential reason for coordination failure. We conduct an experiment with a three player 2x2x2 game in which coordination on the efficient equilibrium is easy and should normally occur. In the control session, we find almost perfect coordination on the payoff-dominant equilibrium, but in the sunspot treatment, dis-coordination is frequent. Sunspots lead to significant inefficiency, and we conclude that sunspots can indeed cause coordination failure.

AB - In a coordination game with Pareto-ranked equilibria, we study whether a sunspot can lead to either coordination on an inferior equilibrium (mis-coordination) or to out-of equilibrium behavior (dis-coordination). While much of the literature searches for mechanisms to attain coordination on the efficient equilibrium, we consider sunspots as a potential reason for coordination failure. We conduct an experiment with a three player 2x2x2 game in which coordination on the efficient equilibrium is easy and should normally occur. In the control session, we find almost perfect coordination on the payoff-dominant equilibrium, but in the sunspot treatment, dis-coordination is frequent. Sunspots lead to significant inefficiency, and we conclude that sunspots can indeed cause coordination failure.

KW - Faculty of Social Sciences

KW - sunspots

KW - coordination game

KW - multiple Pareto-ranked equilibria

KW - experiment

M3 - Journal article

VL - 32

SP - 2860

EP - 2869

JO - Economics Bulletin

JF - Economics Bulletin

SN - 1545-2921

IS - 4

ER -

ID: 43213863