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The Power of Sunspots : An Experimental Analysis

Fehr, Dietmar; Heinemann, Frank; Llorente-Saguer, Aniol - 2012

We present an experiment in which extrinsic information (signals) may generate sunspot equilibria. The underlying … coordination game has a unique symmetric non-sunspot equilibrium, which is also risk-dominant. Other equilibria can be ordered … signals affect behavior. Sunspot equilibria emerge naturally if there are salient public signals. Highly correlated private …

Persistent link: https://www.econbiz.de/10014174188

Stochastic Equilibria : Noise in Actions or Beliefs?

Friedman, Evan - 2020

Quantal response equilibrium (QRE) of McKelvey and Palfrey (1995) relaxes the rationality requirement of Nash equilibrium by allowing for probabilistic mistakes or “noise in actions” while maintaining that beliefs are correct. QRE is well-studied, and much is known about the falsifiable...

Persistent link: https://www.econbiz.de/10012852990

Aggregate Sentiment and Investment : An Experimental Study

Darai, Donja - 2017

afforded by a laboratory setting to experimentally test a simple model of investment with complementarities and time …-varying fundamentals. Our experiment manipulates the presence of aggregate confidence measures to test both how they reflect available …

Persistent link: https://www.econbiz.de/10012951182

Do legal standards affect ethical concerns of consumers?

Danz, David; Engelmann, Dirk; Kübler, Dorothea - 2020

To address the impact of regulation on ethical concerns of consumers, we study the example of minimum wages. In our experimental market, consumers have monopsony power, firms set prices and wages, and workers are passive recipients of a wage payment. We find that the majority of consumers...

Persistent link: https://www.econbiz.de/10012236843

Can endogenous group formation prevent coordination failure? : A theoretical and experimental investigation

Raab, Philippe (contributor) - 2005

, independently of the initial strategy profile. In the experimental part we test this prediction. Our results show that the accuracy …

Persistent link: https://www.econbiz.de/10002881644

Coordination and Cooperation in Local, Random and Small World Networks : Experimental Evidence

Cassar, Alessandra - 2008

A laboratory experiment studies coordination and cooperation in games played in different networks - local, random and small-world. Coordination on the payoff-dominant equilibrium was faster in small-world networks than in local and random networks. However, in a prisoner's dilemma game,...

Persistent link: https://www.econbiz.de/10014213633

Coordination in Networks Formation : Experimental Evidence on Learning and Salience

Galizzi, Matteo Maria; Bernasconi, Michele - 2011

We present experiments on repeated non-cooperative network formation games, based on Bala and Goyal (2000). We treat the one-way and the two-ways flow models, each for high and low link costs. The models show both multiple equilibria and coordination problems. We conduct experiments under...

Persistent link: https://www.econbiz.de/10014062154

Imitation equilibrium

Selten, Reinhard; Ostmann, Axel - 2000

Persistent link: https://www.econbiz.de/10001548848

Imitation equilibrium

Selten, Reinhard; Ostmann, Axel - 2000

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

Two are few and four are many : number effects in experimental oligopolies

Huck, Steffen; Normann, Hans-Theo; Oechssler, Joerg - 2001

Persistent link: https://www.econbiz.de/10001597547