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We examine strategic information transmission in a controlled laboratory experiment of a cheap talk game with one … communication between the sender and the receiver in a way consistent with the theoretical predictions. Deviations from the …
Persistent link: https://www.econbiz.de/10008784698
We introduce strategic waiting in a global game setting with irreversible investment. Players can wait in order to make a better informed decision. We allow for cohort effects and discuss when they arise endogenously in technology adoption problems with positive contemporaneous network effects....
Persistent link: https://www.econbiz.de/10005666707
We use experiments to analyze what type of communication is most effective in achieving cooperation in a simple … collusion game. Consistent with the existing literature on communication and collusion, even minimal communication leads to a … strategies, this initial burst of collusion rapidly collapses. When unlimited pre-game communication is allowed via a chat window …
Persistent link: https://www.econbiz.de/10008558586
information may be welfare-reducing. We have conducted a laboratory experiment with 954 participants to test these hypotheses …
Persistent link: https://www.econbiz.de/10011083588
We analyse an experimental public goods game in which group members can endogenously determine whether they want to supplement a standard voluntary contribution mechanism with the possibility of rewarding or punishing other group members. We find a large and positive effect of endogenous...
Persistent link: https://www.econbiz.de/10005114368
We consider a frictional two-sided matching market in which one side uses public cheap-talk announcements so as to attract the other side. We show that if the first-price auction is adopted as the trading protocol, then cheap talk can be perfectly informative, and the resulting market outcome is...
Persistent link: https://www.econbiz.de/10011083306
Directed search models are market games in which each firm announces a wage commitment to attract a worker. Miscoordination among workers generates search frictions, yet in equilibrium more productive firms post more attractive wage commitments to fill their vacancies faster, which yields...
Persistent link: https://www.econbiz.de/10011083578
for coordination improves horizontal communication but worsens vertical communication. As a result, no matter how …This paper compares centralized and decentralized coordination when managers are privately informed and communicate … important coordination is, decentralization dominates centralization if the division managers are not too biased towards their …
Persistent link: https://www.econbiz.de/10005124372
in an experiment where actions are strategic substitutes. The game theoretic basis for our experiment is the model of … play in networks is to some extent boundedly rational, in the sense that coordination is influenced by local and individual …
Persistent link: https://www.econbiz.de/10005136539
This paper reports results from an experiment studying how fines, leniency programs and reward schemes for …
Persistent link: https://www.econbiz.de/10004976790