Classic Coordination Failures Revisited: The Effects of Deviation Costs and Loss Avoidance

Giovanna Devetag and Andreas Ortmann

CERGE-EI Working Papers from The Center for Economic Research and Graduate Education - Economics Institute, Prague

Abstract: Are communication failures common? We revisit a classic example of experimental coordination failure and explore, in a 2x2 design, the effects of deviation costs and loss avoidance. Our results suggest how to engineer coordination successes in the laboratory, and possibly in the wild.

Keywords: Coordination games; Pareto-ranked equilibria; payoff-asymmetric equilibria; optimization incentives; robustness; coordination failure. (search for similar items in EconPapers)
JEL-codes: C72 C92 (search for similar items in EconPapers)
Date: 2007-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: Classic coordination failures revisited: the effects of deviation costs and loss avoidance (2010)
Working Paper: Classic coordination failures revisited: the effects of deviation costs and loss avoidance (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:cer:papers:wp327

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