On Smiles, Winks and Handshakes as Coordination Devices

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On Smiles, Winks and Handshakes as Coordination Devices

Author Info

Paola Manzini
Abdolkarim Sadrieh
Nicolaas J. Vriend

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Abstract

In an experimental study we examine a variant of the 'minimum effort game', a coordination game with Pareto ranked equilibria and risk considerations pointing to the least efficient equilibrium. We focus on the question whether simple cues such as smiles, winks and handshakes could be recognised and employed by the players as a tell-tale sign of each other's trustworthiness, thus enabling them to coordinate on the more risky but more rewarding Pareto efficient equilibrium. Our experimental results show that such cues may indeed play a role as coordination devices as their information value is significant and substantial. Copyright © The Author(s). Journal compilation © Royal Economic Society 2009.

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Article provided by Royal Economic Society in its journal The Economic Journal.

Volume (Year): 119 (2009)
Issue (Month): 537 (04)
Pages: 826-854
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Handle: RePEc:ecj:econjl:v:119:y:2009:i:537:p:826-854

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Paper
- Manzini, P. & Sadrieh, A. & Vriend, N.J., 2002. "On smiles, winks, and handshake as coordination devices," Discussion Paper 40, Tilburg University, Center for Economic Research. [Downloadable!]
- Paola Manzini & Abdolkarim Sadrieh & Nicolaas J. Vriend, 2002. "On Smiles, Winks, and Handshakes as Coordination Devices," Working Papers 456, Queen Mary, University of London, Department of Economics. [Downloadable!]

References listed on IDEAS
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Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Quazi Shahriar & Subhasish Dugar, 2009. "Focal Points and Economic Efficiency: Role of Relative Label Salience," Working Papers 0033, San Diego State University, Department of Economics. [Downloadable!]
Francesco Feri & Bernd Irlenbusch & Matthias Sutter, 2009. "Efficiency Gains from Team-Based Coordination – Large-Scale Experimental Evidence," Working Paper Series of the Max Planck Institute for Research on Collective Goods 2009_14, Max Planck Institute for Research on Collective Goods. [Downloadable!]
Other versions:
- Feri, Francesco & Irlenbusch, Bernd & Sutter, Matthias, 2008. "Efficiency Gains from Team-Based Coordination: Large-Scale Experimental Evidence," IZA Discussion Papers 3741, Institute for the Study of Labor (IZA). [Downloadable!]
- Francesco Feri & Bernd Irlenbusch & Matthias Sutter, 2008. "Efficiency Gains from Team-Based Coordination – Large-Scale Experimental Evidence," Working Papers 2008-22, Faculty of Economics and Statistics, University of Innsbruck. [Downloadable!]
Saran Rene, 2009. "How Communication Improves Efficiency in Bargaining: Reconciling Theory with Evidence," Research Memoranda 024, Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization. [Downloadable!]

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