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Conventions and Local Interaction Structures: Experimental Evidence

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Author Info
Siegfried K. Berninghaus
Karl-Martin Ehrhart
Claudia Keser ()
Abstract

We present a set of experimental coordination games with a payoff-dominant and a risk-dominant Nash equilibrium. We examine how much local interaction structures affect players' strategy choices. Our three major observations are the following: First, local interaction with open neighborhoods along a circle leads to less coordination on the payoff-dominant equilibrium than interaction in closed neighborhoods (see also Keser, Ehrhart, and Berninghaus, Economics Letters, 1998). Second, when players are allocated around a circle, the neighborhood size has, in the long run, no effect on the players' strategy choices. Third, with the same neighborhood size, players allocated on a lattice tend less than players allocated around a circle to coordinate on the payoff-dominant equilibrium. This is true although the players are given exactly the same instructions.

Nous présentons une série de jeux de coordination expérimentaux avec un équilibre de Nash qui est dominant par rapport au risque et un autre équilibre qui est dominant par rapport au gain. Nous examinons à quel degré des structures d'interaction locale ont une influence sur les choix de stratégies. Nos observations majeures sont les suivantes: Premièrement, l'interaction locale avec des voisinages autour d'un cercle implique moins de coordination sur l'équilibre qui est dominant par rapport au gain que l'interaction dans des voisinages fermés (voir aussi Keser, Ehrhart et Berninghaus, Economics Letters, 1998). Deuxièmement, quand les joueurs sont disposés en cercle, la taille du voisinage n'a pas d'effet à long terme sur les choix de stratégie par les joueurs. Troisièmement, avec la même taille de voisinage, des joueurs disposés en tore tendent moins que des joueurs disposés en cercle de se coordonner sur l'équilibre qui est dominant par rapport au gain. Cette différence est présente bien que les joueurs reçoivent exactement les mêmes instructions.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2000s-36.

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Date of creation: 01 Sep 2000
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Handle: RePEc:cir:cirwor:2000s-36

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Related research
Keywords: Equilibrium selection; local interaction structures; experimental economics; Sélection des équilibres; structure d'interaction locale; économie expérimentale;

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General

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    Other versions:
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