Patience, Cognitive Skill and Coordination in the Repeated Stag Hunt

40 Pages Posted: 19 Feb 2011  

Omar Al-Ubaydli

George Mason University - Department of Economics

Garett Jones

George Mason University - Department of Economics

Jaap Weel

George Mason University - Department of Economics

Date Written: January 19, 2011

Abstract

Coordination games have become a critical tool of analysis in fields such as development and institutional economics. Understanding behavior in coordination games is an important step towards understanding the differing success of teams, firms and nations. This paper investigates the relationship between personal attributes (cognitive ability, risk-aversion, patience) and behavior and outcomes in coordination games, an issue that, to the best of our knowledge, has never been studied before. For the repeated coordination game that we consider, we find that: (1) cognitive ability has no bearing on any aspect of behavior or outcomes; (2) pairs of players who are more patient are more likely to coordinate well and earn higher payoffs; and (3) risk-aversion has no bearing on any aspect of behavior or outcomes. These results are robust to controlling for personality traits and demographic characteristics.

Keywords: Coordination, IQ, Personality, Discount Rate, Patience, Risk-Aversion

JEL Classification: D02, D23, O12, O43

Suggested Citation

Al-Ubaydli, Omar and Jones, Garett and Weel, Jaap, Patience, Cognitive Skill and Coordination in the Repeated Stag Hunt (January 19, 2011). GMU Working Paper in Economics No. 11-11. Available at SSRN: https://ssrn.com/abstract=1764272 or http://dx.doi.org/10.2139/ssrn.1764272

Omar Al-Ubaydli (Contact Author)

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States
703-993-4538 (Phone)
703-993-1133 (Fax)

Garett Jones

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

Jaap Weel

George Mason University - Department of Economics ( email )

4400 University Drive
Fairfax, VA 22030
United States

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