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(Anti-) Coordination in Networks

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  • Kovarik, Jaromir
  • Mengel, Friederike
  • Romero, Jose Gabriel

Abstract

We study (anti-) coordination problems in networks in a laboratory experiment. Partici- pants interact with their neighbours in a fixed network to play a bilateral (anti-) coordination game. Our main treatment variable is the extent to which players are heterogeneous in the number of connections (neighbors) they have. Other network characteristics are held constant across treatments. We find the following results. Heterogeneity in the number of connections dramatically improves the rate of successful coordination. In addition, even though there is a multiplicity of Nash equilibria theoretically, a very sharp selection is observed empirically: the most connected player can impose her preferred Nash equilibrium almost always and observed Nash equilibria are such that all links are coordinated. As a second treatment variation we let agents decide endogenously on the amount of information they would like to have and find that local (endogenous) information is equally efficient in ensuring successful coordination as full information. We provide an intuitive explanation of these facts which is supported by our data.

Suggested Citation

  • Kovarik, Jaromir & Mengel, Friederike & Romero, Jose Gabriel, 2010. "(Anti-) Coordination in Networks," Sustainable Development Papers 61370, Fondazione Eni Enrico Mattei (FEEM).
  • Handle: RePEc:ags:feemdp:61370
    DOI: 10.22004/ag.econ.61370
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    File URL: https://ageconsearch.umn.edu/record/61370/files/NDL2010-049.pdf
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    References listed on IDEAS

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    Cited by:

    1. Rosenkranz, Stephanie & Weitzel, Utz, 2012. "Network structure and strategic investments: An experimental analysis," Games and Economic Behavior, Elsevier, vol. 75(2), pages 898-920.
    2. Charness, Gary & Feri, Francesco & Meléndez-Jiménez, Miguel A. & Sutter, Matthias, 2012. "Equilibrium Selection in Experimental Games on Networks," University of California at Santa Barbara, Economics Working Paper Series qt51v6w9hd, Department of Economics, UC Santa Barbara.

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    More about this item

    Keywords

    Risk and Uncertainty;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C90 - Mathematical and Quantitative Methods - - Design of Experiments - - - General
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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