Contagion: An Experimental Study
Does the network structure in which economic agents interact affect their ability to coordinate of high payoff investments in environments with multiple equilibria? We conduct experiments with paid human subjects in an effort to resolve this important question. Our experiment tests whether two different exogenously imposed interaction structures, the local interaction structure of Ellison (1993) and the uniform matching structure of Kandoori, Mailath, and Rob (1993) or Young (1993), affects the ability of human subjects to coordinate on a payoff dominant Nash equilibrium in a simple coordination game where the unique payoff dominant equilibrium initially coincides with and later differs from the risk dominant Nash equilibrium. The preliminary experimental findings provide insight on how certain payoff dominated strategies may spread through an economy - our definition of a contagion. These findings are also used to construct the appropriate model of individual learning behavior that gives rise to a contagion within the coordination game environments that we study.
|Date of creation:||01 Aug 2000|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:1005. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.