When agents face coordination problems their choices often impose externalities on third parties. We investigate whether such externalities can a¤ect equilibrium selection in a series of one-shot coordination games varying the size and the sign of the externality. We …nd that third-party externalities have a limited e¤ect on decisions.A large majority of participants in the experiment are willing to take an action that increases their income slightly, even if doing so causes substantial inequalities and reductions in overall e¢ ciency. Individuals revealed to be other-regarding in a nonstrategic allocation task often behave as-if sel…sh when trying to coordinate.JEL codes: C90, D01, D03, D62, D63