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equilibria. We find systematic group size differences that theory fails to predict. In the presence of strategic uncertainty, the … coordinate on the safest but Pareto-inferior "run" strategy and never coordinate on sunspots. Our results entail a series of …
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The authors show how the influence of extrinsic random signals depends on the noise structure of these signals. They present an experiment on a coordination game in which extrinsic random signals may generate sunspot equilibria. They measure how these signals affect behavior. Sunspot equilibria...
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parameter. Although theory predicts that sunspot equilibria exist in all treatments, strong responses to sunspots only occur in … device. This paper investigates how people react to sunspots in the context of a bank-run game in a controlled laboratory …
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