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Do Players’ Beliefs or Risk Attitudes Determine The Equilibrium Selections in 2x2 Coordination Games?

Author

Listed:
  • Thomas Neumann

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

  • Bodo Vogt

    (Faculty of Economics and Management, Otto-von-Guericke University Magdeburg)

Abstract

This study focuses on the question whether it is risk aversion or the beliefs of players that explains the strategic choices in 2x2 coordination games. In a laboratory experiment, we elicit the risk attitudes by using lottery choices. Furthermore, using a quadratic scoring rule, subjects’ beliefs about the choice of the opponent are elicited directly. Our data show that participants’ behavior is not explained by risk attitude, but rather is explained as their best response to their stated first order beliefs.

Suggested Citation

  • Thomas Neumann & Bodo Vogt, 2009. "Do Players’ Beliefs or Risk Attitudes Determine The Equilibrium Selections in 2x2 Coordination Games?," FEMM Working Papers 09024, Otto-von-Guericke University Magdeburg, Faculty of Economics and Management.
    • Handle: RePEc:mag:wpaper:09024
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    File URL: http://www.ww.uni-magdeburg.de/fwwdeka/femm/a2009_Dateien/2009_24.pdf
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    References listed on IDEAS

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    Cited by:

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    3. Manja Gärtner & Robert Östling & Sebastian Tebbe, 2023. "Do we all coordinate in the long run?," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 9(1), pages 16-33, June.
    4. Drechsler, Martin, 2023. "Improving models of coordination incentives for biodiversity conservation by fitting a multi-agent simulation model to a lab experiment," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 102(C).
    5. Büyükboyacı, Mürüvvet, 2014. "Risk attitudes and the stag-hunt game," Economics Letters, Elsevier, vol. 124(3), pages 323-325.
    6. Joanne Peryman & David Kelsey, 2021. "Ambiguity when playing coordination games across cultures," Theory and Decision, Springer, vol. 90(3), pages 485-505, May.
    7. Bosworth, Steven J., 2013. "Social capital and equilibrium selection in Stag Hunt games," Journal of Economic Psychology, Elsevier, vol. 39(C), pages 11-20.

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    More about this item

    Keywords

    experimental economics; coordination games; equilibrium selection; first order beliefs;
    All these keywords.

    JEL classification:

    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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