ADAPTIVE-BEHAVIOR AND COORDINATION FAILURE

Authors
VANHUYCK JB COOK JP BATTALIO RC
Citation
Jb. Vanhuyck et al., ADAPTIVE-BEHAVIOR AND COORDINATION FAILURE, Journal of economic behavior & organization, 32(4), 1997, pp. 483-503
Citations number
29
Categorie Soggetti
Economics
Journal title
Journal of economic behavior & organization → ACNP
ISSN journal
01672681
Volume
32
Issue
4
Year of publication
1997
Pages
483 - 503
Database
ISI
SICI code
0167-2681(1997)32:4<483:AACF>2.0.ZU;2-J
Abstract
We use the experimental method to study people's adaptive behavior in a generic game with multiple Pareto ranked equilibria. The experiment was designed to discover if behavior diverged at the separatrix predic ted by the fictitious play dynamic. The equilibrium selected was sensi tive to small differences in initial conditions as predicted. The expe riment provides some striking examples of coordination failure growing from small historical accidents.