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Minimum-effort game under stochastic monitoring

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  • Qu, Yiwei

Abstract

In this paper, I designed a coordination device in minimum-effort games called “stochastic monitoring” and tested its effectiveness in the lab. This device is characterized by: (1) stochastic (negative) material consequences, and (2) non-deterrence, in the sense that the coordination device does not remove any pure-strategy Nash equilibria in the basic minimum-effort game. The results show that stochastic monitoring significantly improved coordination among groups stuck at inefficient outcomes. This effect was stronger under a relatively high punishment, low monitoring probability scheme compared to other low punishment, high probability alternatives. Further analysis reveals that stochastic monitoring functioned as a coordination device, despite having the feature of material incentives.

Suggested Citation

  • Qu, Yiwei, 2026. "Minimum-effort game under stochastic monitoring," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 122(C).
  • Handle: RePEc:eee:soceco:v:122:y:2026:i:c:s2214804326000364
    DOI: 10.1016/j.socec.2026.102545
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