Coordination and local interaction: Experimental evidence
Subjects repeatedly played a three-player coordination game with a payoff-dominant and a risk-dominant equilibrium. Subjects interacting in fixed groups quickly coordinated on the payoff-dominant equilibrium, while those interacting with their neighbours around a circle eventually coordinated on the risk-dominant equilibrium.
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|Date of creation:||01 Jun 1997|
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|Note:||Financial support from the Deutsche Forschungsgemeinschaft, SFB 504, at the University of Mannheim, is gratefully acknowledged.|
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