Costless pre-play communication has been found to effectively facilitate coordination and enhance efficiency in games … costly efforts. Allowing intra-group communication leads to more aggressive competition and greater coordination than control … treatments without any communication. On the other hand, allowing inter-group communication leads to less destructive competition …

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 …