In an experimental 2x2 coordination game with two strict equilibria, we observe that in contrast to equilibrium selection theory (Harsanyi and Selten 1988) only half of the subjects choose the strategy that relates to the payoff- and risk-dominant equilibrium. We discuss several explanations, of which modified risk dominance (Vogt and Albers 1997) seems most convincing.

Co-author Claudia Keser