Coordination by Sunspots: Letter is Mightier than Colour

John Bone (), Michalis Drouvelis (), Konstantinos Georgalos () and Indrajit Ray ()
Additional contact information
John Bone: Department of Economics, University of York
Michalis Drouvelis: Department of Economics, University of Birmingham; CESifo, Munich
Konstantinos Georgalos: Department of Economics, Lancaster University Management School
Indrajit Ray: Economics Section, Cardiff Business School, Cardiff University, https://www.cardiff.ac.uk/people/view/609610-ray-indrajit

No E2025/26, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: We set up an experiment to test whether players use a payoff-irrelevant public message (BLUE or RED) as a possible sunspot to coordinate in a Battle of the Sexes game. We find that players do not play a sunspot equilibrium; instead, they learn to coordinate on a focal point and stick to this focal point even after the public signal is withdrawn.

Keywords: Battle of the Sexes; Coordination; Sunspots; Focal Point (search for similar items in EconPapers)
JEL-codes: C72 C73 D83 (search for similar items in EconPapers)
Pages: 29 pages
Date: 2025-12
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