This paper presents an experiment on a coordination game with extrinsic random signals, in which we systematically vary …

coordination device. The coordination power of sunspots has been analysed in theory and in experiments. However, some have … discussed whether sunspots, e.g., public announcements such as financial market ratings, can create coordination problems. That … forecast, trigger coordination problems? To answer that, we use a repeated three-player stag hunt game with fixed groups. In …

policymakers. As a consequence, expectations traps and coordination failures can occur and multiple equilibria can arise. To … coordination on that equilibrium …

A coordination game with incomplete information is played through time. In each period, payoffs depend on a fundamental …