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Designing Experiments with Computational Testbeds: Effects of Convergence Speed in Coordination Games

Myung, Noah and Romero, Julian (2009) Designing Experiments with Computational Testbeds: Effects of Convergence Speed in Coordination Games. Social Science Working Paper, 1307. California Institute of Technology , Pasadena, CA. (Unpublished) https://resolver.caltech.edu/CaltechAUTHORS:20170727-134909825

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Abstract

Using a computational testbed, we theoretically predict and experimentally show that in the minimum effort coordination game, as the cost of effort increases, 1) the game converges to lower effort levels, 2) the convergence speed increases, and 3) the average payoff is not monotonically decreasing. In fact, the average profit is an U-shaped curve as a function of cost. Therefore, contrary to the intuition, one can obtain a higher average profit by increasing the cost of effort.


Item Type:Report or Paper (Working Paper)
Group:Social Science Working Papers
Subject Keywords:Coordination Game. Computational Testbed. Experiments
Series Name:Social Science Working Paper
Issue or Number:1307
Classification Code:JEL: C63, C73, C91, C92
Record Number:CaltechAUTHORS:20170727-134909825
Persistent URL:https://resolver.caltech.edu/CaltechAUTHORS:20170727-134909825
Usage Policy:No commercial reproduction, distribution, display or performance rights in this work are provided.
ID Code:79499
Collection:CaltechAUTHORS
Deposited By: Jacquelyn Bussone
Deposited On:02 Aug 2017 21:30
Last Modified:03 Oct 2019 18:20

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