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Patience, cognitive skill and coordination in the repeated stag hunt

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  • Al-Ubaydli, Omar
  • Jones, Garett
  • Weel, Jaap

Abstract

Coordination games have become a critical tool of analysis in fields such as development and institutional economics. Understanding behavior in coordination games is an important step towards understanding the differing success of teams, firms and nations. This paper investigates the relationship between personal attributes (cognitive ability, risk-aversion, patience) and behavior and outcomes in coordination games, an issue that, to the best of our knowledge, has never been studied before. For the repeated coordination game that we consider, we find that: (1) cognitive ability has no bearing on any aspect of behavior or outcomes; (2) pairs of players who are more patient are more likely to coordinate well and earn higher payoffs; and (3) risk-aversion has no bearing on any aspect of behavior or outcomes. These results are robust to controlling for personality traits and demographic characteristics.

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  • Al-Ubaydli, Omar & Jones, Garett & Weel, Jaap, 2010. "Patience, cognitive skill and coordination in the repeated stag hunt," MPRA Paper 27723, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:27723
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    Cited by:

    1. Douglas Davis & Asen Ivanov & Oleg Korenok, 2016. "Individual characteristics and behavior in repeated games: an experimental study," Experimental Economics, Springer;Economic Science Association, vol. 19(1), pages 67-99, March.
    2. Friedel Bolle & Philipp E. Otto, 2017. "The flip side of power," Discussion Paper Series RECAP15 26, RECAP15, European University Viadrina, Frankfurt (Oder).
    3. Al-Ubaydli, Omar & Jones, Garett & Weel, Jaap, 2016. "Average player traits as predictors of cooperation in a repeated prisoner's dilemma," Journal of Behavioral and Experimental Economics (formerly The Journal of Socio-Economics), Elsevier, vol. 64(C), pages 50-60.
    4. David Gill & Victoria Prowse, 2016. "Cognitive Ability, Character Skills, and Learning to Play Equilibrium: A Level-k Analysis," Journal of Political Economy, University of Chicago Press, vol. 124(6), pages 1619-1676.
    5. Jörg Spiller & Friedel Bolle, 2017. "Experimental investigations of coordination games: high success rates, invariant behavior, and surprising dynamics," Discussion Paper Series RECAP15 28, RECAP15, European University Viadrina, Frankfurt (Oder).
    6. Spiller, Jörg & Bolle, Friedel, 2017. "Experimental investigations of binary threshold public good games," Discussion Papers 393, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    7. Nobuyuki Hanaki & Nicolas Jacquemet & Stéphane Luchini & Adam Zylbersztejn, 2016. "Fluid intelligence and cognitive reflection in a strategic environment: evidence from dominance-solvable games," Post-Print hal-01359231, HAL.
    8. Bolle, Friedel & Spiller, Jörg, 2016. "Not efficient but payoff dominant: Experimental investigations of equilibrium play in binary threshold public good games," Discussion Papers 379, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    9. Bolle, Friedel, 2017. "A behavioral theory of equilibrium selection," Discussion Papers 392, European University Viadrina Frankfurt (Oder), Department of Business Administration and Economics.
    10. Büyükboyacı, Mürüvvet, 2014. "Risk attitudes and the stag-hunt game," Economics Letters, Elsevier, vol. 124(3), pages 323-325.
    11. Desiree A. Desierto, 2012. "Reforming Institutions and Building Trust To Achieve Sustained Economic Development," UP School of Economics Discussion Papers 201218, University of the Philippines School of Economics.
    12. Antonio M. Espin & Francisco Reyes-Pereira & Luis F. Ciria, 2017. "Organizations should know their people: A behavioral economics approach," Journal of Behavioral Economics for Policy, Society for the Advancement of Behavioral Economics (SABE), vol. 1(S), pages 41-48, November.
    13. Gill, David & Prowse, Victoria, 2012. "Cognitive ability and learning to play equilibrium: A level-k analysis," MPRA Paper 38317, University Library of Munich, Germany, revised 23 Apr 2012.

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    More about this item

    Keywords

    Coordination; IQ; personality; discount rate; patience; risk-aversion;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D02 - Microeconomics - - General - - - Institutions: Design, Formation, Operations, and Impact
    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development

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