The Determinants of Efficient Behavior in Coordination Games

21/03, 17h

Seminario de Economía
We study using experiments the determinants efficient behavior in stag hunt games (2x2 symmetric coordination games with Pareto ranked equilibria). We find that the equilibrium selection criterion of risk dominance is neither a necessary or sufficient condition for a majority of subjects to choose the efficient action. We find that an increase in the size of the basin of attraction of the efficient action results in an increase in efficient behavior. We show that the results are robust to controlling for risk attitudes of the subjects.

Lugar: Campus Alcorta: Av. Figueroa Alcorta 7350, Ciudad de Buenos Aires.
Contacto: Cecilia Lafuente