Coordination via correlation: an experimental study

We report on an experiment exploring whether and how subjects may learn to use a correlation device to coordinate on a correlated equilibrium of the Battle of the Sexes game which Pareto dominates the mixed-strategy Nash equilibrium of that game. We consider a direct correlation device with messages phrased in terms of players’ actions as well as an indirect device with a priori meaningless messages. According to the revelation principle, it...