We develop a new model of the intergenerational transmission of culture based on the labor market characteristics of different cultural types. Following Borjas (1994,1995) we assume that cultural heterogeneity increases labor productivity due to skill complementarities, however following Jackson...

This paper experimentally studies the role of a compromise option in a repeated battle-of-the-sexes game. We find that in a random-matching environment, compromise serves as an effective focal point and facilitates coordination, but fails to improve efficiency. However, in a fixed-partnership...

We consider a model of stochastic evolution in symmetric coordination games with K=2 strategies played by myopic agents. Agents employ the best response with mutations choice rule and simultaneously revise strategies in each period. We form the dynamic process as a Markov chain with state space...