When Does Communication Improve Coordination?

S-Tier
Journal: American Economic Review
Year: 2010
Volume: 100
Issue: 4
Pages: 1695-1724

Authors (2)

Tore Ellingsen (Stockholm School of Economics) Robert Östling (not in RePEc)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study costless pre-play communication of intentions among inexperienced players. Using the level-k model of strategic thinking to describe players' beliefs, we fully characterize the effects of preplay communication in symmetric 2x2 games. One-way communication weakly increases coordination on Nash equilibrium outcomes, although average payoffs sometimes decrease. Two-way communication further improves payoffs in some games but is detrimental in others. Moving beyond the class of symmetric 2x2 games, we find that communication facilitates coordination in common interest games with positive spillovers and strategic complementarities, but there are also games in which any type of communication hampers coordination. (JEL C72, D83)

Technical Details

RePEc Handle
repec:aea:aecrev:v:100:y:2010:i:4:p:1695-1724
Journal Field
General
Author Count
2
Added to Database
2026-01-25