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Classic coordination failures revisited: the effects of deviation costs and loss avoidance

Author

Listed:
  • Giovanna Devetag

    (Department of Law and Management, University of Perugia)

  • Andreas Ortmann

    (Economics Department, Australian School of Business, University of New South Wales)

Abstract

Are communication failures common? We revisit a classic example of experimental coordination failure and explore, in a 2x2 design, the effects of deviation costs and loss avoidance. Our results provide additional insights into the parametric determinants of laboratory coordination failures, and successes.

Suggested Citation

  • Giovanna Devetag & Andreas Ortmann, 2010. "Classic coordination failures revisited: the effects of deviation costs and loss avoidance," Economics Bulletin, AccessEcon, vol. 30(2), pages 1633-1641.
    • Handle: RePEc:ebl:ecbull:eb-10-00262
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    Cited by:

    1. Stefania Bortolotti & Giovanna Devetag & Andreas Ortmann, 2009. "Exploring the effects of real effort in a weak-link experiment," CEEL Working Papers 0901, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
    2. Nick Feltovich & Atsushi Iwasaki & Sobei H. Oda, 2012. "Payoff Levels, Loss Avoidance, And Equilibrium Selection In Games With Multiple Equilibria: An Experimental Study," Economic Inquiry, Western Economic Association International, vol. 50(4), pages 932-952, October.
    3. Nobuyuki Hanaki & Nicolas Jacquemet & Stéphane Luchini & Adam Zylbersztejn, 2016. "Cognitive ability and the effect of strategic uncertainty," Theory and Decision, Springer, vol. 81(1), pages 101-121, June.
    4. Bortolotti, Stefania & Devetag, Giovanna & Ortmann, Andreas, 2016. "Group incentives or individual incentives? A real-effort weak-link experiment," Journal of Economic Psychology, Elsevier, vol. 56(C), pages 60-73.

    More about this item

    Keywords

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    JEL classification:

    • C9 - Mathematical and Quantitative Methods - - Design of Experiments
    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory

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