The authors report experiments on how players select among multiple Pareto-ranked equilibria in a coordination game. Subjects initially choose inefficient equilibria. Charging a fee to play (which makes initial equilibria money-losing) creates coordination on better equilibria. When fees are...

Recent experimental choice studies compare expected utility with competing theories of decision-making under risk. Formal tests used to judge the theories usually count the number of consistent responses, ignoring systematic variation in inconsistent responses. A maximum-likelihood estimation...