When a compromise gets compromised by another compromise

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F61989100%3A27510%2F22%3A10251764" target="_blank" >RIV/61989100:27510/22:10251764 - isvavai.cz</a>

Výsledek na webu

<a href="https://onlinelibrary.wiley.com/doi/full/10.1111/1467-8454.12274" target="_blank" >https://onlinelibrary.wiley.com/doi/full/10.1111/1467-8454.12274</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1111/1467-8454.12274" target="_blank" >10.1111/1467-8454.12274</a>

Jazyk výsledku

angličtina

Název v původním jazyce

When a compromise gets compromised by another compromise

Popis výsledku v původním jazyce

In many situations it is difficult to avoid a conflict and cooperate with others, even when all parties would like to do so. We show that while having one coordination device tends to be beneficial, having more of them may actually make things worse. Our game theoretic analysis examines the relationship between two widely used coordination devices, namely the focal point and leadership. However, instead of conventional Stackelberg leadership we use a more general Stochastic leadership framework that allows for probabilistic revisions of the players&apos; decisions. Upon observing the initial simultaneous actions, each player (Formula presented.) can (simultaneously) change her action with some probability (Formula presented.), known to all players in advance. In this framework, the more rigid player with lower (Formula presented.) assumes the role of a Stochastic leader, and the more flexible player becomes the Stochastic follower. We demonstrate how focal point and leadership may clash in coordination and anti-coordination games such as the Battle of the sexes, Hawk and dove and Stag hunt. Because the focal point is based on symmetry whereas leadership on asymmetry, having these two coordination devices jointly makes Pareto-inferior outcomes more likely. Two distinct effects are behind this phenomenon, we call them multiplicity-broadening and multiplicity-deepening. Our theoretic findings are then linked to many instances from business, sport as well as politics. We also discuss the implications for the design of welfare-improving managerial processes and public policies that might help to avoid costly mis-coordination. (C) 2022 John Wiley &amp; Sons Australia, Ltd.

Název v anglickém jazyce

When a compromise gets compromised by another compromise

Popis výsledku anglicky

In many situations it is difficult to avoid a conflict and cooperate with others, even when all parties would like to do so. We show that while having one coordination device tends to be beneficial, having more of them may actually make things worse. Our game theoretic analysis examines the relationship between two widely used coordination devices, namely the focal point and leadership. However, instead of conventional Stackelberg leadership we use a more general Stochastic leadership framework that allows for probabilistic revisions of the players&apos; decisions. Upon observing the initial simultaneous actions, each player (Formula presented.) can (simultaneously) change her action with some probability (Formula presented.), known to all players in advance. In this framework, the more rigid player with lower (Formula presented.) assumes the role of a Stochastic leader, and the more flexible player becomes the Stochastic follower. We demonstrate how focal point and leadership may clash in coordination and anti-coordination games such as the Battle of the sexes, Hawk and dove and Stag hunt. Because the focal point is based on symmetry whereas leadership on asymmetry, having these two coordination devices jointly makes Pareto-inferior outcomes more likely. Two distinct effects are behind this phenomenon, we call them multiplicity-broadening and multiplicity-deepening. Our theoretic findings are then linked to many instances from business, sport as well as politics. We also discuss the implications for the design of welfare-improving managerial processes and public policies that might help to avoid costly mis-coordination. (C) 2022 John Wiley &amp; Sons Australia, Ltd.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

50202 - Applied Economics, Econometrics

Projekt

<a href="/cs/project/GA16-22540S" target="_blank" >GA16-22540S: "Jak ty mně, tak já tobě?" Obnovení fiskální a finanční stability bez ohrožení měnové stability</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2022

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Australian Economic Papers

ISSN

0004-900X

e-ISSN

—

Svazek periodika

61

Číslo periodika v rámci svazku

4

Stát vydavatele periodika

US - Spojené státy americké

Počet stran výsledku

39

Strana od-do

678-716

Kód UT WoS článku

000851468200001

EID výsledku v databázi Scopus

2-s2.0-85135615298