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 InfoPaper provided by Chapman University, Economic Science Institute in its series Working Papers with number 10-18.
Length: 24 pages
Date of creation: 2010
Date of revision:
minimum effort game; information uncertainty; real time monitoring; circle network; cheap talk;
Other versions of this item:
- Cary Deck & Nikos Nikiforakis, 2012. "Perfect and imperfect real-time monitoring in a minimum-effort game," Experimental Economics, Springer, vol. 15(1), pages 71-88, March.
- 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
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-10-30 (All new papers)
- NEP-CBE-2010-10-30 (Cognitive & Behavioural Economics)
- NEP-EXP-2010-10-30 (Experimental Economics)
- NEP-GTH-2010-10-30 (Game Theory)
- NEP-NET-2010-10-30 (Network Economics)
- NEP-PPM-2010-10-30 (Project, Program & Portfolio Management)
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