Communication in Coordination Games
Abstract
We present experimental evidence on nonbinding, preplay communication in bilateral coordination games. To evaluate the effect of cheap talk, we consider two communication structures (one-way and two-way communication) and two types of coordination games (one with a cooperative strategy and a second in which one strategy is less risky). In games with a cooperative strategy, one-way communication increases play of the Pareto-dominant equilibrium...
Paper Details
Title
Communication in Coordination Games
Published Date
May 1, 1992
Volume
107
Issue
2
Pages
739 - 771
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