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...

We use experiments to analyze what type of communication is most effective in achieving cooperation in a simple collusion game. Consistent with the theories of collusion and cheap talk, an initial burst of collusion rapidly collapses if subjects can only use a limited message space that does not...

We use experiments to analyze what type of communication is most effective in achieving cooperation in a simple collusion game. Consistent with the existing literature on communication and collusion, even minimal communication leads to a short run increase in collusion. However, in a limited...