It is well known that communication often serves as a facilitator for cooperation in static games. Yet, communication … can serve entirely different purposes in dynamic settings as communication during the game may work as a means for … investigates cooperation and non-binding communication in a two-stage game. More specifically, two treatments are considered: one …

-level reasoning in later rounds of the experiments. Participants display difficulties in transferring learning to unravel in a game …

-talk communication raises efficiency in bilateral contracting situations with adverse selection. We replicate their finding and check its … robustness by introducing competition between agents. We find that communication and competition act as substitutes …: communication raises efficiency in the absence of competition but lowers efficiency with competition, and competition raises …

This paper examines whether and how cheap talk communication can facilitate within-group coordination when two unequal … different in this control treatment. Cheap talk communication thus completely solves miscoordination within groups and makes … group members act as a single agent. Furthermore, it is the larger group that benefits from communication at the expense of …

would result. In a series of laboratory experiments we study price formation in markets with private and common values …

We use surveys, laboratory experiments and administrative data to study how heterogeneity in the perceived immorality …