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The effects of pre-play communication in a coordination game with incomplete information

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  • Hu, Youxin
  • Kagel, John
  • Yang, Huanxing
  • Zhang, Lan

Abstract

The effects of pre-play communication in a battle-of-the-sexes game with incomplete information regarding players’ intensity of preferences is compared to the game with no communication. Pre-play communication significantly increases payoffs and the probability of coordination, while reducing miscoordination. Communication is largely informative. A key prediction of the theory, that when two players send different messages, they coordinate on the preferred action of the agent sending the higher message, is generally satisfied. As predicted, communication becomes more informative as the cost of miscoordination increases.

Suggested Citation

  • Hu, Youxin & Kagel, John & Yang, Huanxing & Zhang, Lan, 2020. "The effects of pre-play communication in a coordination game with incomplete information," Journal of Economic Behavior & Organization, Elsevier, vol. 176(C), pages 403-415.
    • Handle: RePEc:eee:jeborg:v:176:y:2020:i:c:p:403-415
    DOI: 10.1016/j.jebo.2020.04.003
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    More about this item

    Keywords

    Coordination game; Private information; Pre-play communication; Experiment;
    All these keywords.

    JEL classification:

    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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