AN EXPERIMENTAL STUDY ON THE RELEVANCE AND SCOPE OF NATIONALITY AS A COORDINATION DEVICE

type="main" xml:id="ecin12097-abs-0001"> In a period marked by extensive cross-national interactions, nationality may present an important focal point that individuals coordinate on. This study uses an experimental approach to study whether nationality serves as a coordination device. We let subjects from Japan, Korea, and China play coordination games in which we vary information about their partner. The results show that nationality serves as a coordination device if common nationality is the only piece of information available to the subjects. The strength of this device is nationality-dependent and diminishes when participants are provided with additional information about their partner. We also find that subjects are likely to coordinate on the Pareto-dominant equilibrium at about the same rate if the partner has a different nationality than if nationality is unknown. (JEL C91, C92, Z1, Z13)