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Coordination and local interaction
Date Issued
1998
Author(s)
DOI
10.1016/S0165-1765(97)00289-9
Abstract
Subjects repeatedly played a three-player coordination game with a payoff-dominant and a risk-dominant equilibrium. Subjects interacting in fixed groups quickly coordinated on the payoff-dominant equilibrium, while those interacting with their neighbors around a circle eventually coordinated on the risk-dominant equilibrium.