An Experiment in the Role of Identity in Fostering Coordination

Summary:  View help for Summary Coordination problems arise in many economic, political, and social situations. Many times, authorities and institutions are created to solve these coordination problems. However, the success of these institutions depends on whether people are willing to follow their prescriptions. Using a behavioral experiment on Amazon Mechanical Turk we analyze whether an authority can aid in solving hawk-dove coordination games and whether its success depends on a shared identity by the players. The authority is represented in our experiment by a randomizing device that recommends actions to players in order to implement a socially efficient correlated equilibrium. In the game, players are better off following the recommendations if they believe others will do as well.  We investigate whether people are more likely to follow recommendations when they have a shared identity. We find that the device's success is not driven by group membership, but rather by the content of its recommendations.

Funding Sources:  View help for Funding Sources University of Pennsylvania