Aggregate and individual effects of information in a coordination (traffic) game

Abstract

AbstractUsing an existing coordination (traffic) experiment, we investigate information's effect on traffic congestion when subjects already have a history of past play. In contrast to previous studies, our interventions neither alter aggregate nor individual payoffs. A second study isolates individual‐subject response to information using a fixed distribution of past subjects. We find information alters subject play: subjects switch roads more often and receive higher payoffs conditional on switching roads. Because switching reduces payoffs unconditionally, information does not generally improve payoffs overall. Only subjects that receive information upon starting the game appear to increase their payoffs due to the information treatment.