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 … find that exogenously introduced sanctions are effective in inducing optimistic beliefs about others and help coordination … on more efficient equilibria. On the other hand, endogenously introduced sanctions negatively influence beliefs about the …