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...

We analyze a dynamic moral hazard problem in teams with imperfect monitoring in continuous time. In the model, players are working together to achieve a breakthrough in a project while facing a deadline. The effort needed to achieve a breakthrough is unknown but players have a common prior about...