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When and why? A critical survey on coordination failure in the laboratory

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  • Giovanna Devetag

    ()

  • Andreas Ortmann

    ()

Abstract

Coordination games with Pareto-ranked equilibria have attracted major theoretical attention over the past two decades. Two early path-breaking sets of experimental studies were widely interpreted as suggesting that coordination failure is a common phenomenon in the laboratory. We identify the major determinants that seem to affect the incidence, and/or emergence, of coordination failure in the lab and review critically the existing experimental studies on coordination games with Pareto-ranked equilibria since that early evidence emerged. We conclude that coordination failure is likely to be the exception rather than the rule, both in the lab and outside of it.

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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 10 (2007)
Issue (Month): 3 (September)
Pages: 331-344

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Handle: RePEc:kap:expeco:v:10:y:2007:i:3:p:331-344

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Web page: http://www.springerlink.com/link.asp?id=102888

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Keywords: Coordination games; Pareto-ranked equilibria; Payoff-asymmetric equilibria; Stag-hunt games; Optimization incentives; Robustness; Coordination; Coordination failure; C72; C92;

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