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Perfect and Imperfect Real-Time Monitoring in a Minimum-Effort Game

Author

Listed:
  • Cary Deck

    (University of Arkansas and Economic Science Institute)

  • Nikos Nikiforakis

    (Department of Economics, University of Melbourne)

Abstract

This paper presents the results from a minimum-effort game in which individuals can observe the choices of others in real time. We find that under perfect monitoring almost all groups coordinate at the payoff-dominant equilibrium. However, when individuals can only observe the actions of their immediate neighbors in a circle network, monitoring improves neither coordination nor efficiency relative to a baseline treatment without real-time monitoring. We argue that the inefficiency of imperfect monitoring is due to information uncertainty, that is, uncertainty about the interpretation of the information available regarding the actions of others.

Suggested Citation

  • Cary Deck & Nikos Nikiforakis, 2010. "Perfect and Imperfect Real-Time Monitoring in a Minimum-Effort Game," Working Papers 10-18, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:10-18
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    References listed on IDEAS

    as
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    Cited by:

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    2. Zhao, Shuchen, 2021. "Taking turns in continuous time," Journal of Economic Behavior & Organization, Elsevier, vol. 191(C), pages 257-279.
    3. Stopnitzky, Yaniv, 2016. "Changing preferences through experimental games: Evidence from sanitation and hygiene in Tamil Nadu," IFPRI discussion papers 1587, International Food Policy Research Institute (IFPRI).
    4. Thommes, Kirsten & Vyrastekova, Jana & Akkerman, Agnes, 2015. "Behavioral spillovers from freeriding in multilevel interactions," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 56(C), pages 78-87.
    5. Stephan Schosser & Bodo Vogt, 2015. "Do hormones impact behavior in the minimum effort game? - An experimental investigation of human behavior during the weakest link game after the administration of vasopressin -," FEMM Working Papers 150011, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    6. Embrey, Matthew & Seel, Christian & Philipp Reiss, J., 2024. "Gambling in risk-taking contests: Experimental evidence," Journal of Economic Behavior & Organization, Elsevier, vol. 221(C), pages 570-585.
    7. Maria Bigoni & Marco Casari & Andrzej Skrzypacz & Giancarlo Spagnolo, 2015. "Time Horizon and Cooperation in Continuous Time," Econometrica, Econometric Society, vol. 83, pages 587-616, March.
    8. Cason, Timothy N. & Savikhin, Anya C. & Sheremeta, Roman M., 2012. "Behavioral spillovers in coordination games," European Economic Review, Elsevier, vol. 56(2), pages 233-245.
    9. Ai Takeuchi & Erika Seki, 2023. "Overcoming problems of coordination and freeriding in a game with multiple public goods: dynamic contribution with information provision," The Japanese Economic Review, Springer, vol. 74(3), pages 379-411, July.
    10. Evan Calford & Ryan Oprea, 2017. "Continuity, Inertia, and Strategic Uncertainty: A Test of the Theory of Continuous Time Games," Econometrica, Econometric Society, vol. 85, pages 915-935, May.
    11. Adnan M. S. Fakir & Yiwei Qian & Naveen Sunder, 2023. "Gender Differences in Preference for Non-pecuniary Benefits in the Labour Market. Experimental Evidence from an Online Freelancing Platform.," Working Paper Series 0623, Department of Economics, University of Sussex Business School.
    12. Ailin Leng & Lana Friesen & Kenan Kalayci & Priscilla Man, 2018. "A minimum effort coordination game experiment in continuous time," Experimental Economics, Springer;Economic Science Association, vol. 21(3), pages 549-572, September.
    13. Roy, Nilanjan, 2017. "Action revision, information and collusion in an experimental duopoly market," MPRA Paper 77033, University Library of Munich, Germany.
    14. Pilwon Kim & Dongryul Lee, 2019. "Repeated minimum-effort coordination games," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1343-1359, September.
    15. Curtis Kephart & Daniel Friedman, 2015. "Hotelling revisits the lab: equilibration in continuous and discrete time," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 1(2), pages 132-145, December.
    16. Roy, Nilanjan, 2023. "Fostering collusion through action revision in duopolies," Journal of Economic Theory, Elsevier, vol. 208(C).
    17. He, Simin & Zhu, Xun, 2023. "Real-time monitoring in a public-goods game," Games and Economic Behavior, Elsevier, vol. 142(C), pages 454-479.

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    More about this item

    Keywords

    minimum effort game; information uncertainty; real time monitoring; circle network; cheap talk;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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