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

van Elten, Jonas and Penczynski, Stefan ORCID: https://orcid.org/0000-0001-5477-6830 (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
UEA Research Groups:	Faculty of Social Sciences > Research Centres > Centre for Behavioural and Experimental Social Sciences Faculty of Social Sciences > Research Groups > Behavioural Economics Faculty of Social Sciences > Research Groups > Economic Theory
Related URLs:	http://www.scopus.com/inward/record.url?...
Depositing User:	LivePure Connector
Date Deposited:	27 Nov 2019 01:59
Last Modified:	21 Apr 2023 00:14
URI:	https://ueaeprints.uea.ac.uk/id/eprint/73077
DOI:	10.1016/j.jebo.2019.11.006

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