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On Smiles, Winks, and Handshakes as Coordination Devices

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  • Manzini, P.
  • Sadrieh, A.
  • Vriend, N.J.

    (Tilburg University, Center for Economic Research)

Abstract

In an experimental study we examine a variant of the 'minimum effort game', a coordination game with Pareto ranked equilibria, and risk considerations pointing to the least efficient equilibrium.We focus on the question whether simple cues such as smiles, winks and handshakes could be recognized and employed by the players as a tell-tale sign of each other's trustworthiness, thus enabling them to coordinate on the more risky but more rewarding Pareto efficient equilibrium.Our experimental results show that such cues may indeed play a role as coordination devices as their information value is significant and substantial.

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Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2002-40.

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Date of creation: 2002
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Handle: RePEc:dgr:kubcen:200240

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Keywords: game theory; trust;

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Cited by:
  1. Quazi Shahriar & Subhasish Dugar, 2009. "Focal Points and Economic Efficiency: Role of Relative Label Salience," Working Papers 0033, San Diego State University, Department of Economics.
  2. Peter H. Kriss & Andreas Blume & Roberto A. Weber, 2011. "Coordination, efficiency and pre-play communication with forgone costly messages," ECON - Working Papers 034, Department of Economics - University of Zurich.
  3. Francesco Feri & Bernd Irlenbusch & Matthias Sutter, 2009. "Efficiency Gains from Team-Based Coordination – Large-Scale Experimental Evidence," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_14, Max Planck Institute for Research on Collective Goods.
  4. Seabright, Paul & Milinski, Manfred & Hopfensitz, Astrid & Djemaï, Elodie & Centorrino, Samuele, 2011. "Smiling is a Costly Signal of Cooperation Opportunities : Experimental Evidence from a Trust Game," Economics Papers from University Paris Dauphine 123456789/7309, Paris Dauphine University.
  5. Johne Bone & Michalis Drouvelis & Indrajit Ray, 2013. "Coordination in 2 x 2 Games by Following Recommendations from Correlated Equilibria," Discussion Papers 12-04r, Department of Economics, University of Birmingham.
  6. John Bone & Michalis Drouvelis & Indrajit Ray, 2012. "Following Recommendations to Avoid Coordination-Failure in 2 x 2 Games," Discussion Papers 12-04, Department of Economics, University of Birmingham.

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