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Economic Laboratory Experiment on Horn's Rule

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Author Info
Kris De Jaegher ()
Stephanie Rosenkranz ()
Utz Weitzel ()

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Abstract

This paper develops a framework for empirically testing several alternative game-theoretic rationales for Horn’s rule. It then presents an economic laboratory experiment where these rationales are empirically tested. Subjects seem to coordinate on Horn’s rule where efficiency acts as a focal point. Nevertheless, a weak interpretation of the evolutionary argument is not rejected: prior play does have an effect on future play. This suggests a hierarchy of effects, where the focal point effect dominates the evolutionary effect, with the latter being more pronounced in cheap talk situations.

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Publisher Info
Paper provided by Utrecht School of Economics in its series Working Papers with number 08-27.

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Length: 22 pages
Date of creation: Oct 2008
Date of revision:
Handle: RePEc:use:tkiwps:0827

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Related research
Keywords: Horn’s Rule; Signalling Theory; Pragmatics; Economic Laboratory;

Find related papers by JEL classification:
C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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This page was last updated on 2009-11-18.

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