We consider an experiment with a version of the Battle of the Sexes game with two-sided private information, allowing a … their types in the cheap-talk phase in both one-way or two-way talk. Furthermore, the unique symmetric cheap-talk … higher payoffs in the game when the talk is one-way as the truthful reports facilitate desired coordination …

medium sized and large groups and show that neighborhood choice indeed leads to coordination on the fully efficient …

This paper characterizes geometrically the set of all Nash equilibrium payoffs achievable with unmediated communication …

We show that essentially every communication equilibrium of any finite Bayesian game with two players can be …

, including those where institutions govern only a subset of players. The experiment confirms that institutions are formed …

behavior of others. This may lead to welfare-reducing ‘overreactions’ to public signals. We present an experiment based on a … extreme case of a pure coordination game, subjects still use their private signals, preventing full coordination … welfare if coordination is socially desirable …