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We report results from an experiment that explores the empirical validity of correlated equilibrium, an important generalization of the Nash equilibrium concept. Specifically, we seek to understand the conditions under which subjects playing the game of Chicken will condition their behavior on...
Persistent link: https://www.econbiz.de/10012723772
The paper analyzes the role of the structure of communication - i.e. who is talking with whom - on the choice of … analysis of credibility, the subjects should communicate and play the Pareto optimal equilibrium only when communication is … disregard communication. The experimental data conform to our predictions: the agents reach the Pareto-dominant equilibrium only …
Persistent link: https://www.econbiz.de/10010418867
effort and sabotage on a prize set by a principal) is extended to allow for coalitions. Using a sequential coalition … formation model with a coalition externality (larger coalitions make self-enforcing sabotage and synergy strategies more … effective), coalition members coordinate their sabotage-synergy activities. Our main result is a sufficient condition for the …
Persistent link: https://www.econbiz.de/10014072263
Persistent link: https://www.econbiz.de/10001548848
signals may also cause sunspot-driven behavior, even though this is no equilibrium. The higher the correlation of signals and …
Persistent link: https://www.econbiz.de/10014174188
The paper presents the concept of an imitation equilibrium and explores it in the context of some simple oligopoly models. The concept applies to normal form games enriched by a reference structure specifying a reference group for every player. The reference group is a set of other players, whom...
Persistent link: https://www.econbiz.de/10011538885
Persistent link: https://www.econbiz.de/10015072121
-play communication: numerical (tabular) only, and verbal and numerical. We find that either kind of pre-play communication increases … trusting, trustworthiness, or both, in inter-subject comparisons, but that the inclusion of verbal communication generates both …
Persistent link: https://www.econbiz.de/10014224260
We report on an experiment using video technology to manipulate pre-play communication protocols in the lab and to … study purely social effects of communication on donations and discrimination between potential receivers. The experimental … the latter decides on her gifts. Through the use of three communication setups (none, audio, and audio-visual) we show and …
Persistent link: https://www.econbiz.de/10003980503
We here develop a model of pre-play communication that generalizes the cheap-talk approach by allowing players to have … is applied to finite and symmetric two-player games and we establish that honest communication and play of the Pareto …-enforcing. -- efficiency ; communication ; coordination ; honesty ; evolutionary stability …
Persistent link: https://www.econbiz.de/10003393210