Coordination and focality under gain-loss framing: Experimental evidence

Odile Poulsen, Krista J. Saral

Research output: Contribution to journalArticle

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Abstract

Are people better at coordinating on a focal point when the game is framed as coordinating on a division of losses rather than gains? In an experimental coordination game, we vary the payoff framing (gain vs loss) and stake size (low vs high) to examine this question. We find that loss framing reduces coordination on the focal point, with the strongest effect observed in high stakes games.
Original languageEnglish
Pages (from-to)75-78
JournalEconomics Letters
Volume164
Early online date11 Jan 2018
DOIs
Publication statusPublished - Mar 2018

Keywords

  • Coordination games
  • Focal point
  • Framing
  • Losses versus gains

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