Conventions for Selecting Among Conventions - An Evolutionary and Experimental Analysis
AbstractConventions can be narrowly interpreted as coordinated ways of equilibrium play, i.e., a specific convention tells all players in a game with multiple strict equilibria which equilibrium to play. In our view, coordination often takes place before learning about the games. Thus, one has to coordinate on a prescribing principle of equilibrium selection. For the subclass of 2x2-bimatrix games with two strict equilibria we analyze the evolutionary stability of various such principles. In our experiment, we allow participants to first coordinate before playing various games. Based on between-subjects treatments, participants do this behind a complete (they know neither their role nor the game parameters), a partial (they know either their role or the game parameters) veil of ignorance, or with no ignorance (they know their role and the game parameters).
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Bibliographic InfoPaper provided by Max Planck Institute of Economics, Strategic Interaction Group in its series Papers on Strategic Interaction with number 2005-21.
Length: 23 pages
Date of creation: Aug 2005
Date of revision:
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2005-09-11 (All new papers)
- NEP-CBE-2005-09-11 (Cognitive & Behavioural Economics)
- NEP-EVO-2005-09-11 (Evolutionary Economics)
- NEP-EXP-2005-09-11 (Experimental Economics)
- NEP-GTH-2005-09-11 (Game Theory)
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