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A Mechanism That Overcomes Coordination Failure Based on Gradualism, Endogeneity, and Modification

Author

Listed:
  • Yoshio Kamijo

    (School of Management, Kochi University of Technology)

  • Hiroki Ozono

    (Faculty of Law, Economic and Humanities, Kagoshima University)

  • Kazumi Shimizu

    (School of Political Science and Economics, Waseda University)

Abstract

We examine three tools that can enhance coordination success in a repeated multiple choice coordination game. Gradualism means that the game starts as an easy coordination problem and moves gradually to a more difficult one. Endogeneity implies that a gradual increase in the upper limit of coordination occurs only if coordination with the Pareto superior equilibrium in a stage game is attained. Modification requires that when they fail coordination, the level of the next coordination game is adjusted to an easier one. We find from laboratory experiment that a mechanism that combines these three, termed herein the GEM, works well.

Suggested Citation

  • Yoshio Kamijo & Hiroki Ozono & Kazumi Shimizu, 2014. "A Mechanism That Overcomes Coordination Failure Based on Gradualism, Endogeneity, and Modification," Working Papers 1401, Waseda University, Faculty of Political Science and Economics.
    • Handle: RePEc:wap:wpaper:1401
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    References listed on IDEAS

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    Cited by:

    1. Hiroki Ozono & Yoshio Kamijo & Kazumi Shimizu, 2014. "Impact of altruistic behavior on group cooperation: A mechanism working in the presence of an altruist may solve the public goods provision problem," Working Papers 1408, Waseda University, Faculty of Political Science and Economics.

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    More about this item

    Keywords

    Coordination Failure; Minimum Effort Game; Experiment; Gradualism; Endogeneity; Modification;
    All these keywords.

    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
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • M54 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Personnel Economics - - - Labor Management

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