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Repeated minimum-effort coordination games

Author

Listed:
  • Pilwon Kim

    (UNIST (Ulsan National Institute of Science and Technology))

  • Dongryul Lee

    (Sungshin University)

Abstract

We consider the repeated minimum-effort coordination game where each player follows an adaptive strategy in each period and his choice is made via the logit probability distribution. We find that there exists a stable probability distribution of the minimum effort levels (called the equilibrium of the game), and the expected value of the minimum effort levels at the equilibrium has the same comparative-statics properties as in the experimental outcomes of Van Huyck et al. (Am Econ Rev 80(1):234–248 1990): it decreases with the effort cost and the number of players. We also find that the expected value at the equilibrium responds differently to the noise parameter, contingent on the effort-cost structure. This provides us with an implication about how we could increase the coordination among the players.

Suggested Citation

  • Pilwon Kim & Dongryul Lee, 2019. "Repeated minimum-effort coordination games," Journal of Evolutionary Economics, Springer, vol. 29(4), pages 1343-1359, September.
    • Handle: RePEc:spr:joevec:v:29:y:2019:i:4:d:10.1007_s00191-018-0587-z
    DOI: 10.1007/s00191-018-0587-z
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    References listed on IDEAS

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    More about this item

    Keywords

    Minimum-effort coordination game; Evolutionary dynamics;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • C63 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computational Techniques

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