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Perfect and imperfect real-time monitoring in a minimum-effort game

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Author Info

  • Cary Deck

    ()

  • Nikos Nikiforakis

    ()

Abstract

This 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.

(This abstract was borrowed from another version of this item.)

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File URL: http://hdl.handle.net/10.1007/s10683-011-9289-1
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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 15 (2012)
Issue (Month): 1 (March)
Pages: 71-88

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Handle: RePEc:kap:expeco:v:15:y:2012:i:1:p:71-88

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

Related research

Keywords: Information uncertainty; Real-time monitoring; Imperfect monitoring; Circle network; Cheap talk; C72; C92; D82;

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References

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  16. Gangadharan, Lata & Nikiforakis, Nikos, 2009. "Does the size of the action set matter for cooperation?," Economics Letters, Elsevier, vol. 104(3), pages 115-117, September.
  17. Schmidt, David & Shupp, Robert & Walker, James M. & Ostrom, Elinor, 2003. "Playing safe in coordination games:: the roles of risk dominance, payoff dominance, and history of play," Games and Economic Behavior, Elsevier, vol. 42(2), pages 281-299, February.
  18. Jordi Brandts & David J. Cooper, 2004. "Observability and Overcoming Coordination Failure in Organizations. An Experimental Study," Working Papers 143, Barcelona Graduate School of Economics.
  19. Cooper, Russell, et al, 1992. "Communication in Coordination Games," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 739-71, May.
  20. Ananish Chaudhuri & Andrew Schotter & Barry Sopher, 2009. "Talking Ourselves to Efficiency: Coordination in Inter-Generational Minimum Effort Games with Private, Almost Common and Common Knowledge of Advice," Economic Journal, Royal Economic Society, vol. 119(534), pages 91-122, 01.
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Citations

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Cited by:
  1. Maria Bigoni & Marco Casari & Andrzej Skrzypacz & Giancarlo Spagnolo, 2011. "Time Horizon and Cooperation in Continuous Time," EIEF Working Papers Series 1116, Einaudi Institute for Economics and Finance (EIEF), revised Jan 2013.
  2. Cason, Timothy N. & Savikhin, Anya C. & Sheremeta, Roman M., 2012. "Behavioral spillovers in coordination games," European Economic Review, Elsevier, vol. 56(2), pages 233-245.

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