The effect of group size and cheap talk in the multi-player stag hunt: experimental evidence

Numerous studies have looked at the factors that influence the likelihood of successful coordination. Two of the most important factors are the size of the group and whether communication is possible. To our knowledge, there has been no systematic study of the interaction between group size and communication. We report results from an experiment in which groups of size 2, 3, 4, 5 and 7 play a one-shot multi-player stag-hunt game. Subjects always have the opportunity to send structured cheap-talk messages, but we vary whether any of these messages are transmitted to group members. We replicate previous results concerning the negative effect of group size on risky-strategy play and successful coordination. Also consistent with previous studies, communication per se matters less than the content of the communication. Finally, we find significant interaction between the group size and the presence/content of communication.