We experimentally investigated whether continuous-time cheap talk improves the effort level in a minimal effort game with multiple Pareto-ranked Nash equilibria. In each round of the game, a player freely changes the message before he or she makes decisions, and constantly monitors other...

We experimentally study the effect of a third person enforcement on a one-shot prisoner’s dilemma game played by two persons, with whom the third person plays repeated prisoner’s dilemma games. We find that when the third person can observe these two persons’ play, the possibility of the...

We hypothesised that people and companies non-anonymously donate to signal their intention to cooperate with observers; consequently, non-anonymous donation works as a coordination device between donors and observers. To test this, we conducted a laboratory experiment where a participant...

We theoretically study the effect of a third person enforcement on a one-shot prisoner’s dilemma game played by two persons, with whom the third person plays repeated prisoner’s dilemma games. We find that the possibility of the third person’s future punishment causes them to cooperate in...

This study experimentally investigates the role of two-sided cheap talk in decisions under asymmetric information. Unlike previous studies, our study also considers endogenous investment timing. In our experiments, subjects play two-player global games with asymmetric information. Before making...