Article ID Journal Published Year Pages File Type
957356 Journal of Economic Theory 2007 29 Pages PDF
Abstract

We study games played between groups of players, where a given group decides which strategy it will play through a vote by its members. When groups consist of two voting players, our games can also be interpreted as network-formation games. In experiments on Stag Hunt games, we find a stark contrast between how groups and individuals play, with payoffs playing a primary role in equilibrium selection when individuals play, but the structure of the voting rule playing the primary role when groups play. We develop a new solution concept, robust-belief equilibrium, which explains the data that we observe. We provide results showing that this solution concept has application beyond the particular games in our experiments.

Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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