Efficient coordination in dynamic network Stag hunt games

• Main Authors: Teh, Tat How, Ang, Zhihao, Yap, Yun Ben
• Other Authors: Yohanes Eko Riyanto
• Format: Final Year Project
• Language: English
• Published: 2015
• Subjects: DRNTU::Social sciences::Economic theory::Microeconomics
• Online Access: http://hdl.handle.net/10356/62599
• Institution: Nanyang Technological University

We conducted z-Tree experiments to study whether different dynamic frequencies will encourage the efficient outcome in the dynamic network Stag Hunt game. We hypothesized that increasing dynamic frequency results in more efficient coordination. Due to their to relevance real-life organizational structures, we chose the star and local network as initial network structures. Our results suggest that mildly fluid dynamic frequencies have a positive effect on efficiency. This is likely because network fluidity helps players to form links with those who can coordinate well with them and break links with those who fails to coordinate with them. To draw parallels to real world scenarios, this can be seen as increase in internal mobility of employees within a firm or loosening regulations in forming business ventures. The results also suggest network homophily.