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Dynamic Behavior in Minimum Effort Coordination Games - Some Theory of Group Size and Inter-Group Competition as Coordination Devices

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  • Thomas Riechmann

    (University of Magdeburg)

Abstract

This paper presents a model of individual behavior in minimum effort coordination games, focusing primarily on the effects of the number of players and the introduction of inter-group competition. It is shown that independent of the number of players and the number of competing groups, the most inefficient equilibrium is always the stochastically stable one. Yet, it turns out that the `security' of more efficient equilibria increases with a decrease of the number of players and with an increase of the number of competing groups.

Suggested Citation

  • Thomas Riechmann, 2005. "Dynamic Behavior in Minimum Effort Coordination Games - Some Theory of Group Size and Inter-Group Competition as Coordination Devices," Game Theory and Information 0503010, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:0503010
    Note: Type of Document - pdf; pages: 35
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    File URL: https://econwpa.ub.uni-muenchen.de/econ-wp/game/papers/0503/0503010.pdf
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    References listed on IDEAS

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    Cited by:

    1. Riechmann, Thomas & Weimann, Joachim, 2008. "Competition as a coordination device: Experimental evidence from a minimum effort coordination game," European Journal of Political Economy, Elsevier, vol. 24(2), pages 437-454, June.

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    More about this item

    Keywords

    Minimum Effort Coordination; Group Competition; Stochastic Stability; Dynamic Games;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior

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