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Asymmetric and Endogenous Within-Group Communication in Competitive Coordination Games

Published on Dec 1, 2017in Experimental Economics2.01
· DOI :10.2139/ssrn.2686851
Timothy N. Cason35
Estimated H-index: 35
(Purdue University),
Roman M. Sheremeta34
Estimated H-index: 34
(Case Western Reserve University),
Jingjing Zhang8
Estimated H-index: 8
(UTS: University of Technology, Sydney)
Abstract
Within-group communication in competitive coordination games has been shown to increase competition between groups and lower efficiency. This study further explores potentially harmful effects of communication, by addressing the questions of (i) asymmetric communication and (ii) the endogenous emergence of communication. Our theoretical analysis provides testable hypotheses regarding the effect of communication on competitive behavior and efficiency. We test these predictions using a laboratory experiment. The experiment shows that although asymmetric communication is not as harmful as symmetric communication, it leads to more aggressive competition and lower efficiency relative to the case when neither group can communicate. Moreover, groups vote to endogenously open communication channels even though this leads to lower payoffs and efficiency.
  • References (60)
  • Citations (9)
References60
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#1Shakun D. Mago (UR: University of Richmond)H-Index: 9
#2Anya Savikhin (UW: University of Wisconsin-Madison)H-Index: 15
Last.Roman M. Sheremeta (Case Western Reserve University)H-Index: 34
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#2John P. LightleH-Index: 6
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#1Emmanuel Dechenaux (KSU: Kent State University)H-Index: 10
#2Dan Kovenock (Chapman University)H-Index: 30
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#1Curtis R. Price (USI: University of Southern Indiana)H-Index: 5
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