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For those about to talk we salute you: an experimental study of credible deviations and ACDC
Published online by Cambridge University Press: 14 March 2025
Abstract
We test the Average Credible Deviation Criterion (ACDC), a stability measure and refinement for cheap talk equilibria introduced in De Groot Ruiz et al. (Equilibrium selection in cheap talk games: ACDC rocks when other criteria remain silent, Working paper, University of Amsterdam 2012a). ACDC has been shown to be predictive under general conditions and to organize data well in previous experiments meant to test other concepts. In a new experimental setting, we provide the first systematic test of whether and to which degree credible deviations matter for the stability of cheap talk equilibria. Our principal experimental result is that in a setting where existing concepts are silent, credible deviations matter and matter gradually, as predicted by ACDC.
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- Copyright © 2013 Economic Science Association
Footnotes
Electronic Supplementary Material The online version of this article (doi:https://doi.org/10.1007/s10683-013-9362-z) contains supplementary material, which is available to authorized users.