Risk aversion and equilibrium selection in a vertical contracting setting: an experiment

Theory and Decision - The theoretical literature on vertical relationships usually assumes that beliefs about secret contracts take specific forms. In a recent paper, Eguia et al. (Games Econ Behav...     

Information-driven coordination: experimental results with heterogeneous individuals

We study experimentally a coordination game with N heterogeneous individuals under different information treatments. We explore the effects of information on the emergence of Pareto-efficient outcomes, by means of a gradual decrease of the information content provided to the players in successive experiments. We observe that successful coordination is possible with private information alone, although not on a Pareto-optimal equilibrium. Reinforcement-based learning models reproduce the qualitative trends of the experimental results.