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Coordination by Sunspots: Letter is Mightier than Colour

Author

Listed:
  • Bone, John

    (Department of Economics, University of York)

  • Drouvelis, Michalis

    (Department of Economics, University of Birmingham; CESifo, Munich)

  • Georgalos, Konstantinos

    (Department of Economics, Lancaster University Management School)

  • Ray, Indrajit

    (Economics Section, Cardiff Business School, Cardiff University)

Abstract

We set up an experiment to test whether players use a payoff-irrelevant public message (BLUE or RED) as a possible sunspot to coordinate in a Battle of the Sexes game. We find that players do not play a sunspot equilibrium; instead, they learn to coordinate on a focal point and stick to this focal point even after the public signal is withdrawn.

Suggested Citation

  • Bone, John & Drouvelis, Michalis & Georgalos, Konstantinos & Ray, Indrajit, 2025. "Coordination by Sunspots: Letter is Mightier than Colour," Cardiff Economics Working Papers E2025/26, Cardiff University, Cardiff Business School, Economics Section.
    • Handle: RePEc:cdf:wpaper:2025/26
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    Keywords

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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