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The Focal Point In The Traveller'S Dilemma: An Experimental Study

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  • Andrea Morone
  • Piergiuseppe Morone

Abstract

This paper provides an experimental test of the traveller’s dilemma. Our investigation aims to address the research hypothesis that introducing a reference point à la Schelling (set equal to the Pareto optimal solution) might drive people away from rationality even when the size of the penalty/reward is high. Experimental findings reported in this paper provide answers to this question showing that the reference point did not encourage coordination around the Pareto optimal choice.
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  • Andrea Morone & Piergiuseppe Morone, 2016. "The Focal Point In The Traveller'S Dilemma: An Experimental Study," Bulletin of Economic Research, Wiley Blackwell, vol. 68(S1), pages 123-132, December.
    • Handle: RePEc:bla:buecrs:v:68:y:2016:i:s1:p:123-132
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    File URL: http://hdl.handle.net/10.1111/boer.2016.68.issue-S1
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    2. Brañas-Garza, Pablo & Espinosa, María Paz & Rey-Biel, Pedro, 2011. "Travelers' types," Journal of Economic Behavior & Organization, Elsevier, vol. 78(1-2), pages 25-36, April.
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    10. Sujoy Chakravarty & Emmanuel Dechenaux & Jaideep Roy, 2010. "Ill-Defined versus Precise Pre-Play Communication in the Traveler’s Dilemma," Southern Economic Journal, John Wiley & Sons, vol. 77(2), pages 351-368, October.
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    Cited by:

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    3. Temerario, Tiziana, 2014. "Individual and Group Behaviour Toward Risk: A Short Survey," MPRA Paper 58079, University Library of Munich, Germany.

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    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • D7 - Microeconomics - - Analysis of Collective Decision-Making

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