Following Recommendations from Public and Private Correlation Devices in a Game of Chicken

John Bone (), Michalis Drouvelis (), Zeynep Gürgüç () and Indrajit Ray ()
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Michalis Drouvelis: Department of Economics, University of Birmingham
Zeynep Gürgüç: School of Business and Management, Queen Mary University of London

No E2024/27, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: We consider a specific parametric version of Chicken and two different correlation devices, public and private, with the same expected payoffs in equilibrium, which is also the best correlated equilibrium payoff for the game. Despite our choices of parameters (payoffs) in the game, in an experiment with these two correlated equilibria, we find that the rate of “following recommendations†vary significantly within and between two treatments using these devices.

Keywords: Recommendation; Correlated equilibrium; Public device (search for similar items in EconPapers)
JEL-codes: C72 C92 D83 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2024-12
New Economics Papers: this item is included in nep-exp and nep-gth
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Citations: View citations in EconPapers (2)

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