Coordination games with asymmetric payoffs: An experimental study with intra-group communication

van Elten, Jonas and Penczynski, Stefan (2020) Coordination games with asymmetric payoffs: An experimental study with intra-group communication. Journal of Economic Behavior & Organization, 169. pp. 158-188. ISSN 0167-2681

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Abstract

Two alternative modes of reasoning in coordination games are prominently discussed in the literature: level-k thinking and team reasoning. In order to differentiate between the two modes of reasoning, we experimentally investigate payoff-asymmetric coordination games using an intra-group communication design that incentivizes subjects to explain the reasoning behind their decisions. We find that the reasoning process is significantly different between games. In payoff-symmetric games, team reasoning plays an important role for coordination. In payoff-asymmetric games, level-k reasoning results in frequent miscoordination. Our study clearly illustrates how small differences between strategic situations have a strong influence on reasoning.

Item Type: Article
Faculty \ School: Faculty of Social Sciences > School of Economics
Related URLs:
Depositing User: LivePure Connector
Date Deposited: 27 Nov 2019 01:59
Last Modified: 28 May 2020 00:05
URI: https://ueaeprints.uea.ac.uk/id/eprint/73077
DOI: 10.1016/j.jebo.2019.11.006

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