Compromise and Coordination: An Experimental Study

@inproceedings{He2018CompromiseAC,
  title={Compromise and Coordination: An Experimental Study},
  author={Simin He and Jia-bin Wu},
  year={2018}
}
This paper experimentally studies the role of a compromise option in a repeated battle-of-the-sexes game. We find that in a random-matching environment, compromise serves as an effective focal point and facilitates coordination, but fails to improve efficiency. However, in a fixed-partnership environment, compromise deters subjects from learning to play alternation, a more efficient but also more complex strategy. As a result, compromise hurts efficiency in the long-run by allowing subjects to… CONTINUE READING

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