Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/57478 
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dc.contributor.authorFehr, Dietmaren
dc.contributor.authorHeinemann, Franken
dc.contributor.authorLlorente-Saguer, Aniolen
dc.date.accessioned2012-01-02-
dc.date.accessioned2012-04-24T11:04:36Z-
dc.date.available2012-04-24T11:04:36Z-
dc.date.issued2011-
dc.identifier.urihttp://hdl.handle.net/10419/57478-
dc.description.abstractWe present an experiment in which extrinsic information (signals) may generate sunspot equilibria. The underlying coordination game has a unique symmetric non-sunspot equilibrium, which is also risk-dominant. Other equilibria can be ordered according to risk dominance. We introduce salient but extrinsic signals on which subjects may condition their actions. By varying the number of signals and the likelihood that different subjects receive the same signal, we measure how strong these signals affect behavior. Sunspot equilibria emerge naturally if there are salient public signals. Highly correlated private signals may also cause sunspot-driven behavior, even though this is no equilibrium. The higher the correlation of signals and the easier they can be aggregated, the more powerful they are in dragging behavior away from the risk-dominant to risk-dominated strategies. Sunspot-driven behavior may lead to welfare losses and exert negative externalities on agents, who do not receive extrinsic signals.en
dc.language.isoengen
dc.publisher|aMax Planck Institute for Research on Collective Goods |cBonnen
dc.relation.ispartofseries|aPreprints of the Max Planck Institute for Research on Collective Goods |x2011,33en
dc.subject.jelC92en
dc.subject.jelC72en
dc.subject.jelD84en
dc.subject.ddc330en
dc.subject.keywordstrategic uncertaintyen
dc.subject.keywordcoordination gamesen
dc.subject.keywordsunspot equilibriaen
dc.subject.keywordirrelevant informationen
dc.subject.stwNichtkooperatives Spielen
dc.subject.stwKoordinationen
dc.subject.stwSunspoten
dc.subject.stwGleichgewichten
dc.subject.stwTesten
dc.titleThe power of sunspots: An experimental analysis-
dc.typeWorking Paperen
dc.identifier.ppn682040819en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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