An experiment in the role of identity in fostering coordination

Abraham Aldama (), Daniel Draganoff and Gantavya Pahwa
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Abraham Aldama: Vote Rev
Daniel Draganoff: University of Pennsylvania
Gantavya Pahwa: University of Pennsylvania

Journal of the Economic Science Association, 2024, vol. 10, issue 2, No 7, 294-309

Abstract: Abstract Coordination problems arise in many economic, political, and social situations. Many times, authorities and institutions are created to solve these coordination problems. However, the success of these institutions depends on whether people are willing to follow their prescriptions. Using a behavioral experiment on Amazon Mechanical Turk we analyze whether an authority can aid in solving hawk-dove coordination games and whether its success depends on a shared identity by the players. The authority is represented in our experiment by a randomizing device that recommends actions to players to implement a socially efficient correlated equilibrium. In the game, players are better off following the recommendations if they believe others will do as well. We investigate whether people are more likely to follow recommendations when they have a shared identity. We find that the device’s success is not driven by group membership, but rather by the content of its recommendations.

Keywords: Coordination; Institutions; Identity; Correlated equilibrium; Experiment (search for similar items in EconPapers)
JEL-codes: C72 D91 (search for similar items in EconPapers)
Date: 2024
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DOI: 10.1007/s40881-023-00158-y

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