1. GAME THEORY

2. Methodological Stuff Matching of players Strategy method
Infinitely repeated games
Beliefs

3. Coordination Games E.g. entry into markets Pure matching games
Mixed-motive games (different preferences over coordinated outcome)
Minimum effort games

4. General Results Pure matching games, “focal points” are important
Mixed-motive coordination games=> Players tend to play close to the MSNE (less efficient than coordinating)
One-way communication helps, two-way doesn’t.
Outside options can help.

5. Order Statistic Games
Payoff depends on own choice & on an order statistic (e.g. mean, median of all choices etc.)
Stag hunt, whale hunters in Indonesia etc.
Weakest-link games, production (e.g. restaurant wait times, group projects, airlines)
“Strategic complementarities”=> The marginal productivity of action increases with the level of another’s action.

7. Your Results

8. Your Results (cont’d)

9. The Effects of Group Size and Matching
Groups of 2, partner matching, 7 periods. 10 of 12 pairs reached the efficient minimum of 7.
Groups of 2, random rematching (stranger protocol)—converged to 1, just like in large groups (14-16 people).
Group size has large impact on outcomes

10. Minimum Effort Coordination Games
Goeree & Holt (2005): subjects paired for 10 rounds 3 sessions with c= sessions with c=0.75

12. Continental Divide

14. Centipede Game

15. Palacios-Huerta & Volij (2009)
JUDITH POLGAR

19. Matching Pennies
Professional Spanish football players

20. Beauty Contest Games

21. Beauty Contest Games—Keynes’ Quote

22. Dominance-Solvable Games

26. Your Data

27. Bosch-Domènech, Montalvo, Nagel, and Satorra (2002) report results from a series of newspaper experiments with the guessing game (p = 2/3).
In spite of the lack of control, the newspaper experiments look remarkably similar to the laboratory experiments with spikes at 33, 22, and 0.
Subjects who were able to correctly describe the Nash equilibrium generally (81%) did not choose zero.
Subjects who conducted their own experiments did better than game theorists or the general public at predicting the winning number

30. Conclusions