Forward induction in coordination games

Russell Cooper, Douglas V. De Jong, Robert Forsythe, Thomas W. Ross

Research output: Contribution to journalArticlepeer-review

38 Scopus citations

Abstract

This paper provides experimental evidence on the power of forward induction arguments in a 2×2 coordination game. Allowing one player the option of obtaining a certain payoff instead of playing the game coordinates play in the direction predicted by the forward induction argument. However, two-way pre-play communication is a more effective coordination device.

Original languageEnglish (US)
Pages (from-to)167-172
Number of pages6
JournalEconomics Letters
Volume40
Issue number2
DOIs
StatePublished - Oct 1992

All Science Journal Classification (ASJC) codes

  • Finance
  • Economics and Econometrics

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