Behavioral Economics Seminar: How experiences influence decision making: Coordination Games

The Behavioral Economics group at IFRO invite to open seminars with a range of subjects within Behavioral Economics.

Anna Lou Abatayo, postdoc at Department of Food and Resouce Economics, will present a current paper she is working on involving coordination games across samples from three different countries.

Abstract

Experiences stay with individuals after the fact and influence how these individuals make decisions. In this paper, we investigate how an exogenously given positive coordination experience affects the subsequent coordination behavior of Ghanaians, Spaniards and Danes. Using a 5-round minimum effort game, we tell participants, in either the first or second rounds, that they must pick the Pareto efficient effort level and compare their subsequent behavior to those who were not told to pick. We find that, for all three countries, a prior positive coordination experience in the first round leads to better coordination in subsequent rounds. Spaniards also coordinate better after a positive coordination experience in the second round. The positive effect of the experience on coordination declines the further away the round is from the experience. These declines, however, are slow. Participants are still able to coordinate better 2 to 3 rounds after the experience compared to the baseline.

For further information, contact:
Catrine Jacobsen, cj@ifro.ku.dk