Title: Using Turn Taking to Mitigate Conflict and Coordination Problems in the Battle of the Sexes Game
Reference Number: 1129
Publication Date: April 2005
JEL Classifcation: C70, C72

Sau-Him Paul Lau
The University of Hong Kong

Vai-Lam Mui
Monash University

The Battle of the Sexes game, which captures both conflict and coordination problems, has been applied to a wide range of situations. We show that, by reducing conflict of interest and enhancing coordination, (eventual) turn taking supported by a 'turn taking with independent randomizations' strategy allows players to engage in intertemporal sharing of the gain from cooperation. Using this insight, we decompose the benefit from turn taking into conflict-mitigating and coordination-enhancing components. Our analysis suggests that an equilibrium measure of the 'degree of intertemporal conflict' provides an intuitive way to understand the sources of welfare gain from turn taking in the repeated Battle of the Sexes game. We find that when this equilibrium measure is higher, players behave more aggressively and the welfare gain from turn taking is smaller.

Key words: Battle of the Sexes game, turn taking, conflict mitigating, coodination enhancing

Last modified: 06/07/2005