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The dark side of friendship: ‘envy’

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  • Ramón Cobo-Reyes

    ()

  • Natalia Jiménez

Abstract

This paper studies the effect of social relations on convergence to the efficient equilibrium in 2×2 coordination games from an experimental perspective. We employ a 2×2 factorial design in which we explore two different games with asymmetric payoffs and two matching protocols: “friends” versus “strangers”. In the first game, payoffs by the worse-off player are the same in the two equilibria, whereas in the second game, this player will receive lower payoffs in the efficient equilibrium. Surprisingly, the results show that “strangers” coordinate more frequently in the efficient equilibrium than “friends” in both games. Network measures such as in-degree, out-degree and betweenness are all positively correlated with playing the strategy which leads to the efficient outcome but clustering is not. In addition, ‘envy’ explains no convergence to the efficient outcome. Copyright Economic Science Association 2012

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File URL: http://hdl.handle.net/10.1007/s10683-012-9313-0
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Bibliographic Info

Article provided by Springer in its journal Experimental Economics.

Volume (Year): 15 (2012)
Issue (Month): 4 (December)
Pages: 547-570

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Handle: RePEc:kap:expeco:v:15:y:2012:i:4:p:547-570

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

Related research

Keywords: Coordination; Efficiency; ‘Envy’; Experiments; Friendship; Social networks; A14; C72; C92; D63;

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Citations

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Cited by:
  1. Pablo Branas-Garza & Ramon Cobo-Reyes & Natalia Jimenez & Giovanni Pontiy, 2013. "A Guided Tour to (Real-Life) Social Network Elicitation," Working Papers 13-21, Chapman University, Economic Science Institute.
  2. Robert Shupp & Roman M. Sheremeta & David Schmidt & James Walker, 2013. "Resource Allocation Contests: Experimental Evidence," Working Papers 13-23, Chapman University, Economic Science Institute.
  3. Filippin, A. & Crosetto, P., 2014. "A reconsideration of gender differences in risk attitudes," Working Papers 2014-01, Grenoble Applied Economics Laboratory (GAEL).

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