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Learning and sophistication in coordination games

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  • Kyle Hyndman
  • Antoine Terracol
  • Jonathan Vaksmann

Abstract

This paper studies the role of strategic teaching in coordination games and whether changing the incentives of players to teach leads to more efficient coordination. We ran experiments where subjects played one of four coordination games in constant pairings, where the incentives to teach were varied along two dimensions--the short run cost of teaching and the long run benefit to teaching. We show which aspects of the game lead subjects to adopt long run teaching strategies, and show that subjects try to manipulate their opponent's actions to pull them out of a situation of coordination failure. We also show that extending a model of decision making by introducing a forward-looking component helps to track teachers' behaviour more accurately, and describes the way players behave in a more unified way across both teachers and learners.
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  • Kyle Hyndman & Antoine Terracol & Jonathan Vaksmann, 2009. "Learning and sophistication in coordination games," Experimental Economics, Springer;Economic Science Association, vol. 12(4), pages 450-472, December.
    • Handle: RePEc:kap:expeco:v:12:y:2009:i:4:p:450-472
    DOI: 10.1007/s10683-009-9223-y
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    Cited by:

    1. Maoliang Ye & Jie Zheng & Plamen Nikolov & Sam Asher, 2020. "One Step at a Time: Does Gradualism Build Coordination?," Management Science, INFORMS, vol. 66(1), pages 113-129, January.
    2. Feri, Francesco & Gantner, Anita & Moffatt, Peter G. & Erharter, Dominik, 2022. "Leading to efficient coordination: Individual traits, beliefs and choices in the minimum effort game," Games and Economic Behavior, Elsevier, vol. 136(C), pages 403-427.
    3. He, Simin & Wu, Jiabin, 2020. "Compromise and coordination: An experimental study," Games and Economic Behavior, Elsevier, vol. 119(C), pages 216-233.
    4. Shota Fujishima, 2015. "The emergence of cooperation through leadership," International Journal of Game Theory, Springer;Game Theory Society, vol. 44(1), pages 17-36, February.
    5. Masiliūnas, Aidas, 2017. "Overcoming coordination failure in a critical mass game: Strategic motives and action disclosure," Journal of Economic Behavior & Organization, Elsevier, vol. 139(C), pages 214-251.
    6. Timothy Cason & Sau-Him Lau & Vai-Lam Mui, 2013. "Learning, teaching, and turn taking in the repeated assignment game," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 54(2), pages 335-357, October.
    7. Bryan McCannon, 2011. "Coordination between a sophisticated and fictitious player," Journal of Economics, Springer, vol. 102(3), pages 263-273, April.
    8. Frey Vincenz & Corten Rense & Buskens Vincent, 2012. "Equilibrium Selection in Network Coordination Games: An Experimental Study," Review of Network Economics, De Gruyter, vol. 11(3), pages 1-28, September.
    9. Masiliūnas, Aidas, 2019. "Overcoming inefficient lock-in in coordination games with sophisticated and myopic players," Mathematical Social Sciences, Elsevier, vol. 100(C), pages 1-12.
    10. Kyle Hyndman & Dorothée Honhon, 2020. "Flexibility in Long-Term Relationships: An Experimental Study," Manufacturing & Service Operations Management, INFORMS, vol. 22(2), pages 273-291, March.
    11. Steven J. Bosworth, 2017. "The importance of higher-order beliefs to successful coordination," Experimental Economics, Springer;Economic Science Association, vol. 20(1), pages 237-258, March.
    12. Jordi Brandts & David J. Cooper & Enrique Fatas & Shi Qi, 2016. "Stand by Me—Experiments on Help and Commitment in Coordination Games," Management Science, INFORMS, vol. 62(10), pages 2916-2936, October.

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    More about this item

    Keywords

    Game theory; Learning; Teaching; Coordination; Experiment; C91; D43; D83;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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