Equilibrium Play in Large Group Market Entry Games
Coordination behavior is studied experimentally in a class of noncooperative market entry games featuring symmetric players, complete information, zero entry costs, and several randomly presented values of the market capacity. Once the market capacity becomes publicly known, each player must decide privately whether to enter the market and receive a payoff, which increases linearly in the difference between the market capacity and the number of entrants, or stay out. Payoffs for staying out are either positive, giving rise to the domain of gains, or negative, giving rise to the domain of losses. The major findings are substantial individual differences that do not diminish with practice, aggregate behavior that is organized extremely well in both the domains of gains and losses by the Nash equilibrium solution, and variations in the population action strategies with repeated play of the stage game that are accounted for by a variant of an adaptive learning model due to Roth and Erev (1995).
Volume (Year): 44 (1998)
Issue (Month): 1 (January)
|Contact details of provider:|| Postal: 7240 Parkway Drive, Suite 300, Hanover, MD 21076 USA|
Web page: http://www.informs.org/
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Gérard P. Cachon & Colin F. Camerer, 1996. "Loss-Avoidance and Forward Induction in Experimental Coordination Games," The Quarterly Journal of Economics, Oxford University Press, vol. 111(1), pages 165-194.
- J. B. Van Huyck & R. C. Battalio & R. O. Beil, 2010.
"Tacit coordination games, strategic uncertainty, and coordination failure,"
Levine's Working Paper Archive
661465000000000393, David K. Levine.
- Van Huyck, John B & Battalio, Raymond C & Beil, Richard O, 1990. "Tacit Coordination Games, Strategic Uncertainty, and Coordination Failure," American Economic Review, American Economic Association, vol. 80(1), pages 234-48, March.
- John B Van Huyck & Raymond C Battalio & Richard O Beil, 1997. "Tacit coordination games, strategic uncertainty, and coordination failure," Levine's Working Paper Archive 1225, David K. Levine.
- Amos Tversky & Daniel Kahneman, 1979.
"Prospect Theory: An Analysis of Decision under Risk,"
Levine's Working Paper Archive
7656, David K. Levine.
- Kahneman, Daniel & Tversky, Amos, 1979. "Prospect Theory: An Analysis of Decision under Risk," Econometrica, Econometric Society, vol. 47(2), pages 263-91, March.
- Jeffrey S. Banks & Charles R. Plott & David P. Porter, 1988. "An Experimental Analysis of Unanimity in Public Goods Provision Mechanisms," Review of Economic Studies, Oxford University Press, vol. 55(2), pages 301-322.
- Crawford, Vincent P, 1995.
"Adaptive Dynamics in Coordination Games,"
Econometric Society, vol. 63(1), pages 103-43, January.
- Gary-Bobo, Robert J., 1990.
"On the existence of equilibrium points in a class of asymmetric market entry games,"
Games and Economic Behavior,
Elsevier, vol. 2(3), pages 239-246, September.
- GARY-BOBO, Robert J., . "On the existence of equilibrium points in a class of asymmetric market entry games," CORE Discussion Papers RP 905, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- John B. Van Huyck & Raymond C. Battalio & Richard O. Beil, 1991. "Strategic Uncertainty, Equilibrium Selection, and Coordination Failure in Average Opinion Games," The Quarterly Journal of Economics, Oxford University Press, vol. 106(3), pages 885-910.
When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:44:y:1998:i:1:p:119-141. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mirko Janc)
If references are entirely missing, you can add them using this form.