Optimization incentive and relative riskiness in experimental coordination games

Dimitri Dubois (), Marc Willinger and Phu Nguyen Van
Authors registered in the RePEc Author Service: Phu Nguyen-Van

Working Papers from LAMETA, Universtiy of Montpellier

Abstract: We compare the experimental results of three stag-hunt games. In contrast to Battalio et al. (2001), our design keeps the riskiness ratio of the payoff-dominant and the risk-dominant strategies at a constant level as the optimisation premium is increased. We define the riskiness ratio as the relative payoff range of the two strategies. We find that decreasing the riskiness ratio while keeping the optimization premium constant increases sharply the frequency of the risk-dominant strategy. On the other hand an increase of the optimization premium with a constant riskiness ratio has no effect on the choice frequencies. Finally, we confirm the dynamic properties found by Battalio et al. that increasing the optimization premium favours best-response and sensitivity to the history of play.

Pages: 14 pages
Date: 2008-11, Revised 2008-11
New Economics Papers: this item is included in nep-exp and nep-gth
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.lameta.univ-montp1.fr/Documents/DR2008-19.pdf First version, 2008 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.lameta.univ-montp1.fr:80 (No such host is known. )

Related works:
Working Paper: Optimization incentive and relative riskiness in experimental coordination games (2009)
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:lam:wpaper:08-19

Access Statistics for this paper

More papers in Working Papers from LAMETA, Universtiy of Montpellier Contact information at EDIRC.
Bibliographic data for series maintained by Patricia Modat ( this e-mail address is bad, please contact ).