On the role of non-equilibrium focal points as coordination devices

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2013
Volume: 94
Issue: C
Pages: 52-67

Authors (2)

Bosch-Domènech, Antoni (not in RePEc) Vriend, Nicolaas J. (Queen Mary University of Londo...)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Considering a pure coordination game with a large number of equivalent equilibria, we argue that a focal point that is itself not a Nash equilibrium, and is Pareto dominated by all Nash equilibria, may enhance coordination substantially. Besides attracting the players’ choices to itself, such a non-equilibrium focal point may act as an equilibrium selection device that the players use to coordinate on a small subset of Nash equilibria. We present experimental support for these two roles of non-equilibrium focal points as coordination devices, and suggest a theoretical explanation for this.

Technical Details

RePEc Handle
repec:eee:jeborg:v:94:y:2013:i:c:p:52-67
Journal Field
Theory
Author Count
2
Added to Database
2026-01-29