Heinemann, Frank; Llorente-Saguer, Aniol; Fehr, Dietmar - 2011
We present an experiment in which extrinsic signals may generate sunspot equilibria. The game has a unique symmetric … non-sunspot equilibrium, which is also risk dominant. Other equilibria can be ordered according to risk dominance. By … Sunspot equilibria emerge naturally, if there are salient (but extrinsic) public signals. However, salient private signals of …