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dc.contributor.authorFehr, Dietmaren_US
dc.date.accessioned2011-06-29en_US
dc.date.accessioned2012-04-05T16:19:11Z-
dc.date.available2012-04-05T16:19:11Z-
dc.date.issued2011en_US
dc.identifier.urihttp://hdl.handle.net/10419/56689-
dc.description.abstractPrecedents can facilitate successful coordination within groups by reducing strategic uncertainty, but they may lead to coordination failure when two groups with diverging precedents have to interact. This paper describes an experiment to explore how such coordination failure can be mitigated and whether subjects are aware of it. In an initial phase, groups were able to establish a precedent in a repeated weakest-link game, and in a second phase two groups with different precedents are merged into a larger group. As expected, this leads to coordination failures. Unlike most of the previous literature, subjects could endogenously choose to communicate in the merged group for a small fee. The results suggest that communication can mitigate the coordination failure in the merged group and, in most cases, leads to efficient coordination. However, subjects in particular from groups with an efficient precedent in the initial phase are inattentive to the potential coordination failure and choose not to communicate. This can have profound consequences since groups who fail to implement communication are unable to achieve effcient coordination in the second phase. The results may be useful for the understanding of how groups learn to solve coordination problems from past coordination success or failure.en_US
dc.language.isoengen_US
dc.publisherSFB 649, Economic Risk Berlinen_US
dc.relation.ispartofseriesSFB 649 discussion paper 2011-039en_US
dc.subject.jelC72en_US
dc.subject.jelC92en_US
dc.subject.jelD23en_US
dc.subject.jelL23en_US
dc.subject.ddc330en_US
dc.subject.keywordcoordinationen_US
dc.subject.keywordprecedenten_US
dc.subject.keywordcostly communicationen_US
dc.subject.keywordcheap talken_US
dc.subject.stwNichtkooperatives Spielen_US
dc.subject.stwKoordinationen_US
dc.subject.stwKommunikationen_US
dc.subject.stwTesten_US
dc.titleThe persistance of "bad" precedents and the need for communication: A coordination experimenten_US
dc.typeWorking Paperen_US
dc.identifier.ppn663299543en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen_US
Appears in Collections:SFB 649 Discussion Papers, HU Berlin

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