The Power of Sunspots

Dietmar Fehr, Frank Heinemann & Aniol Llorente-Saguer
We present an experiment in which extrinsic information (signals) may generate sunspot equilibria. The underlying coordination game has a unique symmetric non-sunspot equilibrium, which is also risk-dominant. Other equilibria can be ordered according to risk dominance. We compare treatments with different salient, but extrinsic signals. By increasing the precision of private signals, we manipulate the available public information, which allows us to measure the force of extrinsic signals. We also vary the number of signals...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.