Endogenous communication and tacit coordination in market entry games: An explorative experimental study

B-Tier
Journal: International Journal of Industrial Organization
Year: 2010
Volume: 28
Issue: 5
Pages: 477-495

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

This paper explores the effects of communication in market entry games experimentally. It is shown that communication increases coordination success substantially and generate inferior outcomes for consumers when market entry costs are symmetric. Such effects are not observed when costs are asymmetric, since asymmetries provide a tacit coordination cue used by experienced players (as a substitute to communication). It is also shown that although communication is used both to achieve market domination equilibria and cooperative market separating equilibria, the latter type of communication is much more common and successful.

Technical Details

RePEc Handle
repec:eee:indorg:v:28:y:2010:i:5:p:477-495
Journal Field
Industrial Organization
Author Count
2
Added to Database
2026-01-24