Perfect and imperfect real-time monitoring in a minimum-effort game
AbstractThis paper presents the results from a minimum-effort game in which individuals can observe the choices of others in real time. We find that under perfect monitoring almost all groups coordinate at the payoff-dominant equilibrium. However, when individuals can only observe the actions of their immediate neighbors in a circle network, monitoring improves neither coordination nor efficiency relative to a baseline treatment without real-time monitoring. We argue that the inefficiency of imperfect monitoring is due to information uncertainty, that is, uncertainty about the interpretation of the information available regarding the actions of others.
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Bibliographic InfoArticle provided by Springer in its journal Experimental Economics.
Volume (Year): 15 (2012)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.springerlink.com/link.asp?id=102888
Information uncertainty; Real-time monitoring; Imperfect monitoring; Circle network; Cheap talk; C72; C92; D82;
Other versions of this item:
- Cary Deck & Nikos Nikiforakis, 2010. "Perfect and Imperfect Real-Time Monitoring in a Minimum-Effort Game," Working Papers 10-18, Chapman University, Economic Science Institute.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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