We study communication in a two-player coordination game with Pareto-ranked equilibria. Prior research demonstrates … that efficient coordination is difficult without communication but obtains regularly with (mandatory) costless pre …-play messages. In a laboratory experiment, we modify communication by making the sending of messages optional and costly. Even small …

Considering a pure coordination game with a large number of equivalent equilibria, we argue, first, that a focal point … two new roles of focal points as coordination devices. …

Coordination games have multiple equilibria under complete information. However, recent theoretical advances show that … depends on whether they can implement strategies (stochastic choice rules) discontinuous in the state. We experimentally test …

coordination of the players. When the players are coordinated on buying (selling), we say the market is in the up (down) mood. In … this model changing investor sentiment is a rational strategy as it leads to a Nash equilibrium of the coordination game …

revealed preference experiment, and without making any parametric assumptions, we show that 1/3 of participants belong in the …

recommendations. In an experiment, advisers obtained information about a set of three differently risky investment options to advise …