We investigate the effect of absence of common knowledge on the outcomes of coordination games in a laboratory … experiment. Using cognitive types, we can explain coordination failure in pure coordination games while differentiating between … coordination failure due to first- and higher-order beliefs. In our experiment, around 76% of the subjects have chosen the payoff …

efficiently in a repeated minimum effort coordination game. While most groups first experience inefficient coordination in a … sanctions can play an important role as a coordination device in Pareto-ranked coordination settings, such as teamwork in firms …