Economic Laboratory Experiment on Horn's Rule
This paper develops a framework for empirically testing several alternative game-theoretic rationales for Hornâ€™s rule. It then presents an economic laboratory experiment where these rationales are empirically tested. Subjects seem to coordinate on Hornâ€™s rule where efficiency acts as a focal point. Nevertheless, a weak interpretation of the evolutionary argument is not rejected: prior play does have an effect on future play. This suggests a hierarchy of effects, where the focal point effect dominates the evolutionary effect, with the latter being more pronounced in cheap talk situations.
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