Maximum effort in the minimum-effort game
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We report results from standard minimum-effort experiments conducted in Copenhagen (Denmark). Our subjects frequently coordinate on the Pareto-efficient equilibrium even in groups of six. This is in stark contrast to the previous literature, as we show in a detailed analysis of experiments which had the same design but were held in different countries. The subject-pool effect is substantiated by the finding that, the higher the share of Danish subjects in a group, the higher the minimum-effort levels. These findings suggest that the prevalent coordination failures previously observed are affected by significant subject-pool effects.
KeywordsMinimum-effort game Coordination game Experiment Social capital
JEL ClassificationC72 C91 C92
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