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Research output: Working paper
Research output: Working paper
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TY - UNPB
T1 - Overcoming coordination failure in games with focal points
T2 - An experimental investigation
AU - Rojo Arjona, David
AU - Sitzia, Stefania
AU - Zheng, Jiwei
PY - 2021/8/31
Y1 - 2021/8/31
N2 - Focal points (Schelling, 1960) have shown limitations as coordination devices ingames with conflict, such as the battle of the sexes games. We experimentally test whether an increase in their salience can counteract the negative impact of conflict on coordination. The intuition is that, in the presence of conflict, the solution to the coordination dilemma offered by the focal point loses importance. Increasing its salience increases its relevance and therefore coordination success. Our results provide strong support for this conjecture. Furthermore, when games feature outcomes with different degrees of payoffs’ inequality (i.e. the difference of players’ payoffs) and efficiency (i.e. the sum of players’ payoffs), increasing salience does not lead to an obvious increase in coordination, unless the salience of the focal point is maximal.
AB - Focal points (Schelling, 1960) have shown limitations as coordination devices ingames with conflict, such as the battle of the sexes games. We experimentally test whether an increase in their salience can counteract the negative impact of conflict on coordination. The intuition is that, in the presence of conflict, the solution to the coordination dilemma offered by the focal point loses importance. Increasing its salience increases its relevance and therefore coordination success. Our results provide strong support for this conjecture. Furthermore, when games feature outcomes with different degrees of payoffs’ inequality (i.e. the difference of players’ payoffs) and efficiency (i.e. the sum of players’ payoffs), increasing salience does not lead to an obvious increase in coordination, unless the salience of the focal point is maximal.
KW - coordination games
KW - focal points
KW - salience
KW - conflict of interests
KW - battle-of-the-sexes
KW - intermixed-blocked effect
M3 - Working paper
T3 - Economics Working Papers Series
BT - Overcoming coordination failure in games with focal points
PB - The Department of Economics
CY - Lancaster
ER -