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Coordination in Noncooperative Three-Person Games under Different Information Structures

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  • Amnon Rapoport

    (University of Arizona)

  • Mark A. Fuller

    (University of Arizona)

Abstract

Although game theory discusses focal point effects in pure coordination games, it is largely silent with respect to the game properties that render an equilibrium salient. Schelling (1960), and subsequently Mehta et al. (1994), started a program of developing a descriptive theory of focal points in pure coordination games by showing that strategy labelling makes an equilibrium salient by deriving its significance from the common experience and beliefs of the players. We report three experiments on noncooperative three-person coordination games in extensive form which show that, in addition to strategy labeling, players choose equilibria based on information about the temporal order of play, which is considered irrelevant by classical game theory.

Suggested Citation

  • Amnon Rapoport & Mark A. Fuller, 1998. "Coordination in Noncooperative Three-Person Games under Different Information Structures," Group Decision and Negotiation, Springer, vol. 7(4), pages 363-382, July.
    • Handle: RePEc:spr:grdene:v:7:y:1998:i:4:d:10.1023_a:1008690222964
    DOI: 10.1023/A:1008690222964
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    References listed on IDEAS

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    1. Guth, Werner & Huck, Steffen & Rapoport, Amnon, 1998. "The limitations of the positional order effect: Can it support silent threats and non-equilibrium behavior?," Journal of Economic Behavior & Organization, Elsevier, vol. 34(2), pages 313-325, February.
    2. Cooper, Russell & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1993. "Forward Induction in the Battle-of-the-Sexes Games," American Economic Review, American Economic Association, vol. 83(5), pages 1303-1316, December.
    3. Kreps, David M., 1990. "Game Theory and Economic Modelling," OUP Catalogue, Oxford University Press, number 9780198283812.
    4. Drew Fudenberg & Jean Tirole, 1991. "Game Theory," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262061414, April.
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    Cited by:

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    2. Jacob K. Goeree & Charles A. Holt, 2000. "An Explanation of Anomalous Behavior in Binary-Choice Games: Entry, Voting, Public Goods, and the Volunteers' Dilemma," Virginia Economics Online Papers 328, University of Virginia, Department of Economics.
    3. Jeannette Brosig & Joachim Weimann & Chun-Lei Yang, 2003. "The Hot Versus Cold Effect in a Simple Bargaining Experiment," Experimental Economics, Springer;Economic Science Association, vol. 6(1), pages 75-90, June.

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