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On Smiles, Winks, and Handshakes as Coordination Devices

Author

Listed:
  • Paola Manzini

    (Queen Mary, University of London)

  • Abdolkarim Sadrieh

    () (Tilburg University)

  • Nicolaas J. Vriend

    () (Queen Mary, University of London)

Abstract

In an experimental study we examine a variant of the 'minimum effort game' , a coordination game with Pareto ranked equilibria, and risk considerations pointing to the least efficient equilibrium. We focus on the question whether simple cues such as smiles, winks and handshakes could be recognized and employed by the players as a tell-tale sign of each other's trustworthiness , thus enabling them to coordinate on the more risky but more rewarding Pareto efficient equilibrium. Our experimental results show that such cues may indeed play a role as coordination devices as their information value is significant and substantial.

Suggested Citation

  • Paola Manzini & Abdolkarim Sadrieh & Nicolaas J. Vriend, 2002. "On Smiles, Winks, and Handshakes as Coordination Devices," Working Papers 456, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:wp456
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    References listed on IDEAS

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    Cited by:

    1. Edward Cartwright & Joris Gillet & Mark Van Vugt, 2013. "Leadership By Example In The Weak-Link Game," Economic Inquiry, Western Economic Association International, vol. 51(4), pages 2028-2043, October.
    2. Lu Dong & Maria Montero & Alex Possajennikov, 2018. "Communication, leadership and coordination failure," Theory and Decision, Springer, vol. 84(4), pages 557-584, June.
    3. Andreas Blume & Peter H. Kriss & Roberto A. Weber, 2017. "Pre-play communication with forgone costly messages: experimental evidence on forward induction," Experimental Economics, Springer;Economic Science Association, vol. 20(2), pages 368-395, June.
    4. Johne Bone & Michalis Drouvelis & Indrajit Ray, 2013. "Coordination in 2 x 2 Games by Following Recommendations from Correlated Equilibria," Discussion Papers 12-04r, Department of Economics, University of Birmingham.
    5. Francesco Feri & Bernd Irlenbusch & Matthias Sutter, 2010. "Efficiency Gains from Team-Based Coordination—Large-Scale Experimental Evidence," American Economic Review, American Economic Association, vol. 100(4), pages 1892-1912, September.
    6. Karl Wärneryd, 2014. "Observable Strategies, Commitments, and Contracts," CESifo Working Paper Series 5089, CESifo Group Munich.
    7. Buyukboyaci, Muruvvet & Kucuksenel, Serkan, 2016. "Coordination and Cheap Talk: Indirect versus Direct Messages," MPRA Paper 68964, University Library of Munich, Germany.
    8. Fehr, Dietmar, 2017. "Costly communication and learning from failure in organizational coordination," European Economic Review, Elsevier, vol. 93(C), pages 106-122.
    9. Mamadou Gueye & Nicolas Quérou & Raphael Soubeyran, 2018. "Does equity induce inefficiency? An experiment on coordination," CEE-M Working Papers 18-07, CEE-M, Universitiy of Montpellier, CNRS, INRA, Montpellier SupAgro.

    More about this item

    Keywords

    Coordination games; Pareto efficiency; Trust; Cues; Signals;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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