Step thinking and costly coordination

E. Fatas, A.J. Morales

Research output: Contribution to journalArticle

3 Citations (Scopus)

Abstract

Using the experimental sessions of Goeree and Holt (2005), we show that step thinking fits the long-run outcome of minimum-effort and median-effort games surprisingly well for all values of the cost parameter. In the latter, the predicted discontinuous behaviour of step thinking accommodates the bimodal pattern observed for the intermediate values of the cost parameter quite well.
Original languageEnglish
Pages (from-to)181-183
Number of pages3
JournalEconomics Letters
Volume120
Issue number2
DOIs
Publication statusPublished - 1 Aug 2013

Keywords

  • Experiments
  • Step thinking
  • Coordination games

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