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Coordination in 2 x 2 Games by Following Recommendations from Correlated Equilibria

  • Johne Bone
  • Michalis Drouvelis
  • Indrajit Ray

We consider three games, Symmetric Battle of the Sexes, Modified Battle of the Sexes and Chicken and two different correlation devices, public and private, with the same expected payoffs in equilibrium, which is also the best correlated equilibrium payoff for these games. Despite our choices of the payoffs in these games based on some theoretical criteria, we find that coordination and following recommendations vary significantly among our treatments. We explain these differences by analysing players' choices in cases when they do and do not follow recommendations in different games.

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File URL: ftp://ftp.bham.ac.uk/pub/RePEc/pdf/12-04R.pdf
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Paper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 12-04r.

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Length: 34 pages
Date of creation: Feb 2013
Handle: RePEc:bir:birmec:12-04r
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Edgbaston, Birmingham, B15 2TT

Web page: http://www.economics.bham.ac.uk

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