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Asymmetric and Endogenous Within-Group Communication in Competitive Coordination Games

Author

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  • Timothy N. Cason

    (Department of Economics, Krannert School of Management, Purdue University)

  • Roman M. Sheremeta

    (Department of Economics, Weatherhead School of Management, Case Western Reserve and Economic Science Institute, Chapman University)

  • Jingjing Zhang

    (Economics Discipline Group, University of Technology Sydney)

Abstract

Within-group communication in competitive coordination games has been shown to increase competition between groups and lower efficiency. This study further explores potentially harmful effects of communication, by addressing the questions of (i) asymmetric communication and (ii) the endogenous emergence of communication. Our theoretical analysis provides testable hypotheses regarding the effect of communication on competitive behavior and efficiency. We test these predictions using a laboratory experiment. The experiment shows that although asymmetric communication is not as harmful as symmetric communication, it leads to more aggressive competition and lower efficiency relative to the case when neither group can communicate. Moreover, groups vote to endogenously open communication channels even though this leads to lower payoffs and efficiency.

Suggested Citation

  • Timothy N. Cason & Roman M. Sheremeta & Jingjing Zhang, 2015. "Asymmetric and Endogenous Within-Group Communication in Competitive Coordination Games," Working Papers 15-23, Chapman University, Economic Science Institute.
    • Handle: RePEc:chu:wpaper:15-23
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    References listed on IDEAS

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    More about this item

    Keywords

    between-group competition; within-group competition; communication; coordination; contests; experiments;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D72 - Microeconomics - - Analysis of Collective Decision-Making - - - Political Processes: Rent-seeking, Lobbying, Elections, Legislatures, and Voting Behavior
    • H41 - Public Economics - - Publicly Provided Goods - - - Public Goods

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