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Patience, Cognitive Skill and Coordination in the Repeated Stag Hunt

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Author Info

  • Omar Al-Ubaydli

    ()
    (Interdisciplinary Center for Economic Science and Department of Economics, George Mason University)

  • Garett Jones

    ()
    (Department of Economics, George Mason University)

  • Jaap Weel

    ()
    (Department of Economics, George Mason University)

Abstract

Coordination games have become a critical tool of analysis in fields such as development and institutional economics. Understanding behavior in coordination games is an important step towards understanding the differing success of teams, firms and nations. This paper investigates the relationship between personal attributes (cognitive ability, risk-aversion, patience) and behavior and outcomes in coordination games, an issue that, to the best of our knowledge, has never been studied before. For the repeated coordination game that we consider, we find that: (1) cognitive ability has no bearing on any aspect of behavior or outcomes; (2) pairs of players who are more patient are more likely to coordinate well and earn higher payoffs; and (3) risk-aversion has no bearing on any aspect of behavior or outcomes. These results are robust to controlling for personality traits and demographic characteristics.

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Bibliographic Info

Paper provided by George Mason University, Interdisciplinary Center for Economic Science in its series Working Papers with number 1024.

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Length: 40
Date of creation: May 2011
Date of revision:
Handle: RePEc:gms:wpaper:1024

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Keywords: coordination; IQ; personality; discount rate; patience; risk-aversion;

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References

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Cited by:
  1. David Gill & Victoria Prowse, 2013. "Cognitive ability and learning to play equilibrium: A level-k analysis," Economics Series Working Papers 641, University of Oxford, Department of Economics.

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