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Tacit coordination in large groups is studied in an iterated market entry game with complete information and multiple … markets, we find remarkable coordination on the aggregate level, which is accounted for by the Nash equilibrium, together with …
Persistent link: https://www.econbiz.de/10014037618
In a coordination game such as the Battle of the Sexes, agents can condition their plays on external signals that can … are rare. Thus, even in a world of simple learning agents, coordination behavior can take on some surprising forms. …
Persistent link: https://www.econbiz.de/10011515836
How should an agent (the sender) observing multi-dimensional data (the state vector) persuade another agent to take the desired action? We show that it is always optimal for the sender to perform a (non-linear) dimension reduction by projecting the state vector onto a lower-dimensional object...
Persistent link: https://www.econbiz.de/10012799529
Learning is crucial to organizational decision making but often needs to be delegated. We examine a dynamic delegation problem where a principal decides on a project with uncertain profitability. A biased agent, who is initially as uninformed as the principal, privately learns the profitability...
Persistent link: https://www.econbiz.de/10012587421
Persistent link: https://www.econbiz.de/10003807183
coordination problems. We conduct experiments under various conditions which control for salient labeling and learning dynamics …. Contrary to previous experiments, we find that coordination on non-empty Strict Nash equilibria is not an easy task for … significantly helps coordination, but only when subjects are pre-instructed to think of the wheel network as a reasonable way to …
Persistent link: https://www.econbiz.de/10014062154
We study how subjects in an experiment use different forms of public information about their opponents' past behavior. In the absence of public information, subjects appear to use rather detailed statistics summarizing their private experiences. If they have additional public information, they...
Persistent link: https://www.econbiz.de/10011437784
Recently there has been much theoretical and experimental work on learning in games. However, learning usually means learning about the strategic behavior of opponents rather than learning about the game as such. In contrast, here we report on an experiment designed to test whether players learn...
Persistent link: https://www.econbiz.de/10011539825
One reason for firms to voluntarily increase their environmental or social production standards is to prevent consumers from lobbying for stricter mandatory standards. In this sense, voluntary overcompliance serves as a Greek gift, as consumers might be worse off in the end. Strategically, a...
Persistent link: https://www.econbiz.de/10011332809
We report experiments designed to test between Nash equilibria that are stable and unstable under learning. The “TASP” (Time Average of the Shapley Polygon) gives a precise prediction about what happens when there is divergence from equilibrium under fictitious play like learning processes....
Persistent link: https://www.econbiz.de/10003921539