Coordination by sunspots: Letter is mightier than colour

Bone, John, Drouvelis, Michalis, Georgalos, Konstantinos and Ray, Indrajit ORCID: https://orcid.org/0000-0001-5254-3144 2025. Coordination by sunspots: Letter is mightier than colour. [Discussion Paper]. Cardiff Economics Working Paper E2025, vol. 26. Cardiff: Cardiff Business School.

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Abstract

We set up an experiment to test whether players use a payoff-irrelevant public message (BLUE or RED) as a possible sunspot to coordinate in a Battle of the Sexes game in which the strategies are labelled X and Y. We find that players do not play a sunspot equilibrium, instead learn to coordinate on a particular focal point (strategy X) in the game, even in the presence of the public signal (colour) and stick to this focal point, after the public signal is withdrawn.

Item Type:	Monograph (Discussion Paper)
Date Type:	Publication
Status:	Submitted
Schools:	Schools > Business (Including Economics)
Subjects:	H Social Sciences > HB Economic Theory
Publisher:	Cardiff Business School
Last Modified:	23 Dec 2025 11:00
URI:	https://orca.cardiff.ac.uk/id/eprint/183399

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