The power of sunspots: an experimental analysis

Dietmar Fehr, Frank Heinemann and Aniol Llorente-Saguer

No 13-2, Working Papers from Federal Reserve Bank of Boston

Abstract: The authors show how the influence of extrinsic random signals depends on the noise structure of these signals. They present an experiment on a coordination game in which extrinsic random signals may generate sunspot equilibria. They measure how these signals affect behavior. Sunspot equilibria emerge naturally if there are salient public signals. Highly correlated private signals may also cause sunspot-driven behavior, even though this is no equilibrium. The higher the correlation of signals and the more easily these can be aggregated, the more powerful these signals are in moving actions way from the risk-dominant equilibrium.

Keywords: Human; behavior (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-cbe and nep-exp
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.bostonfed.org/economic/wp/wp2013/wp1302.htm (text/html)
http://www.bostonfed.org/economic/wp/wp2013/wp1302.pdf (application/pdf)

Related works:
Journal Article: The power of sunspots: An experimental analysis (2019)
Working Paper: The Power of Sunspots: an Experimental Analysis (2017)
Working Paper: The Power of Sunspots: An Experimental Analysis (2011)
Working Paper: The power of sunspots: An experimental analysis (2011)
Working Paper: The Power of Sunspots: An Experimental Analysis (2011)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fip:fedbwp:13-2

Ordering information: This working paper can be ordered from

Access Statistics for this paper

More papers in Working Papers from Federal Reserve Bank of Boston Contact information at EDIRC.
Bibliographic data for series maintained by Catherine Spozio ().