Galbiati, Roberto; Schlag, Karl; Weele, Joël van der - Dipartimento di Politica Economica, Finanza e Sviluppo … - 2009
We experimentally investigate the effects of sanctions when there are multiple equilibria. Two subjects play a two-period minimum effort game in the presence of third player (principal). The principal benefits from coordination on higher effort, and is the only one informed of previous choices...