THE FOCAL POINT IN THE TRAVELLER'S DILEMMA: AN EXPERIMENTAL STUDY. (12th May 2016)

• Record Type: Journal Article
• Authors: Morone, Andrea; Morone, Piergiuseppe
• Is Part Of: Bulletin of economic research. Volume 68(2016:Dec.)Supplement 1
• Page Start: 123
• Page End: 132
• Publication Date: 2016-05-12
• Subjects: focal point -- individual decision -- traveller's dilemma -- C91 -- C92 -- D81 -- D70; Economics -- Periodicals; Great Britain -- Economic conditions -- Periodicals; 330.05
• DOI: 10.1111/boer.12086
• Languages: English
• ISSNs: 0307-3378

Abstract

ABSTRACT: This paper provides an experimental test of the traveller's dilemma. Our investigation aims to address the research hypothesis that introducing a reference point à la Schelling (set equal to the Pareto optimal solution) might drive people away from rationality even when the size of the penalty/reward is high. Experimental findings reported in this paper provide answers to this question showing that the reference point did not encourage coordination around the Pareto optimal choice.