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We report an experiment in which subjects may learn from each other. Specifically, a “queue” of players who are identically informed ex ante make decisions in sequence over two lotteries. Every player except the first in the queue observes (only) his immediate predecessor’s choice and...
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How do individuals achieve "good outcomes" in one-shot strategic situations? One possibility is that they engage in some kind of preplay communication - cheap talk - in which they endeavor to convince one another of the actions they intend to play. Another, less explored, possibility is that...
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We augment a standard bilateral gift exchange game so employees can send messages at the same time as choosing an effort level. Employee effort (controlling for wages) is unaffected by allowing messages, but wages dramatically increase. Messages affect wages because employees give managers...
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