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ON SMILES, WINKS, AND HANDSHAKES: CAN THEY ENHANCE COORDINATION?
Category: Economic Theory
Game Experiments I Monday 26th August 2002, 14:30 - 16:00, Room: 5.4
Session Chair(s):
Nick Vriend, Queen Mary, University of London, UNITED KINGDOM
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Abstract:
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In an experimental study we focus on a variant of the 'minimum effort game', a coordination game with Pareto ranked equilibria, and risk considerations pointing to the least efficient equilibrium. We examine whether implicit signals such as smiles, winks and handshakes could be employed and recognized by the players as a telltale 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 can indeed play a role as coordination devices.
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Find this file in the \Papers\296\ folder of this CD-ROM.
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