Overcoming coordination failure in games with focal points: An experimental investigation

B-Tier
Journal: Games and Economic Behavior
Year: 2022
Volume: 136
Issue: C
Pages: 505-523

Authors (3)

Rojo Arjona, David (Leicester University) Sitzia, Stefania (not in RePEc) Zheng, Jiwei (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We experimentally test whether increasing the salience of payoff-irrelevant focal points (Schelling, 1960) can counteract the negative impact of conflicts of interest on coordination. The intuition is that, in the presence of conflict, the solution to the coordination dilemma offered by the focal point loses importance. Increasing its salience increases its relevance and, therefore, coordination success. When we vary label salience between subjects, we find support for this conjecture in games with a constant degree of conflict, similar to battle of the sexes games, but not in games that feature outcomes with different degrees of payoff inequality and efficiency. In an additional experiment in which we vary label salience within subjects, choices are found not to be affected by our salience manipulation. Yet, the proportion of choices consistent with the focal point is significantly greater than that in the between-subject design.

Technical Details

RePEc Handle
repec:eee:gamebe:v:136:y:2022:i:c:p:505-523
Journal Field
Theory
Author Count
3
Added to Database
2026-01-29