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Marc Knez
Epsilon-equilibriumEquilibrium selectionSequential equilibriumMarkov perfect equilibriumSymmetric equilibrium
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Abstract In this paper, I use simple coordination games to examine the process under which precedents (or past equilibrium experiences) transfer across games. I study a 3-player conflict-of-interest game that possesses two focal equilibria: an equal payoff equilibrium and a coalitional equilibrium. The social convention of equal sharing is not sufficiently powerful to select the equal-payoff equilibrium. However, after subjects develop homegrown experience playing the equal-payoff equilibrium in...
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