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Exploring the effects of real effort in a weak-link experiment

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  • Stefania Bortolotti

    ()

  • Giovanna Devetag

    ()

  • Andreas Ortmann

    ()

Abstract

We report results from a weak-link � often also called minimum-effort � game experiment with multiple Pareto-ranked strict pure-strategy Nash equilibria, using a real-effort rather than a chosen-effort task: subjects have to sort and count coins and their payoff depends on the worst performance in the group. While in the initial rounds our subjects typically coordinate on inefficient outcomes, almost 80 percent of the groups are able to overcome coordination failure in the later rounds. Our results are in stark contrast to results typically reported in the literature.

Suggested Citation

  • Stefania Bortolotti & Giovanna Devetag & Andreas Ortmann, 2009. "Exploring the effects of real effort in a weak-link experiment," CEEL Working Papers 0901, Cognitive and Experimental Economics Laboratory, Department of Economics, University of Trento, Italia.
  • Handle: RePEc:trn:utwpce:0901
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    File URL: http://www-ceel.economia.unitn.it/papers/papero09_01.pdf
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    References listed on IDEAS

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    Cited by:

    1. Dutcher, E. Glenn & Salmon, Timothy C. & Saral, Krista J., 2015. "Is "Real" Effort More Real?," MPRA Paper 68394, University Library of Munich, Germany.

    More about this item

    Keywords

    real effort; weak-link game; coordination; laboratory experiments.;

    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

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