This paper provides a formal analysis on the investment coordination problem in a vertically separated electricity … decisions of network and power plants need to be coordinated. In unbundled markets, firm-internal coordination no longer applies …. We develop a formal approach to examine whether sim- ple information exchange ("cheap talk") could restore coordination …

conventional coordination, where subjects bet on only one alternative, subjects coordinate by the distribution of points. This … coordination. The data confirms the theoretical predictions regarding coordination behavior and demonstrates that the proposed … ordinary coordination. Finally, we point to the possibility to use the mechanism as a simple and direct tool to measure the …

We investigate the effect of absence of common knowledge on the outcomes of coordination games in a laboratory … experiment. Using cognitive types, we can explain coordination failure in pure coordination games while differentiating between … coordination failure due to first- and higher-order beliefs. In our experiment, around 76% of the subjects have chosen the payoff …