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A Model of Behavior in Coordination Game Experiments

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  • Martin Sefton

Abstract

This paper constructs a structural model for behavior in expeiments where subjects play a simple coordination game repeatedly under a rotating partner scheme. The model assumes subjects' actions are stochastic best responses to beliefs about opponents' choices, and these beliefs update as subjects observe actual choices during the experiment. The model accounts for heterogeneity across subjects by regarding prior beliefs as random effects and estimating their distribution. Maximum likelihood estimates from experimental data suggest that distributions of initial beliefs vary across games, but in all games studied imply a convergence dynamic toward risk-dominant equilibrium. Copyright Kluwer Academic Publishers 1999

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  • Martin Sefton, 1999. "A Model of Behavior in Coordination Game Experiments," Experimental Economics, Springer;Economic Science Association, vol. 2(2), pages 151-164, December.
    • Handle: RePEc:kap:expeco:v:2:y:1999:i:2:p:151-164
    DOI: 10.1023/A:1009948206599
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    References listed on IDEAS

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    Cited by:

    1. Masiliūnas, Aidas, 2019. "Overcoming inefficient lock-in in coordination games with sophisticated and myopic players," Mathematical Social Sciences, Elsevier, vol. 100(C), pages 1-12.
    2. Rudy Santore & Michael McKee & David Bjornstad, 2010. "Patent Pools as a Solution to Efficient Licensing of Complementary Patents? Some Experimental Evidence," Journal of Law and Economics, University of Chicago Press, vol. 53(1), pages 167-183, February.
    3. Alm, James & McKee, Michael, 2004. "Tax compliance as a coordination game," Journal of Economic Behavior & Organization, Elsevier, vol. 54(3), pages 297-312, July.
    4. Rami Zwick & Amnon Rapoport, 2002. "Tacit Coordination in a Decentralized Market Entry Game with Fixed Capacity," Experimental Economics, Springer;Economic Science Association, vol. 5(3), pages 253-272, December.
    5. Battalio,R. & Samuelson,L. & Huyck,J. van, 1998. "Risk dominance, payoff dominance and probabilistic choice learning," Working papers 2, Wisconsin Madison - Social Systems.
    6. Antonio Cabrales & Walter Garcia Fontes, 2000. "Estimating learning models from experimental data," Economics Working Papers 501, Department of Economics and Business, Universitat Pompeu Fabra.

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