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 …

coordination in a minimum effort game. Choosing the highest effort is the payoff dominant Nash equilibrium in this game, and … benefits of coordination are low compared to the cost of mis-coordination. In this environment, players converge to the most … effort is observed by the rest of the group. We study whether leadership can prevent coordination failure and whether …

proposed contagion mechanism applies generally in global coordination games and can also be applied to bank runs, sovereign …