Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
Informal exchange of information among competitors has been well-documented in a variety of industries. We use an indeterminate horizon centipede game to establish an information feedback loop in the laboratory and show that an individual’s beliefs about the recipient’s intentions to reciprocate matter more than a recipient’s ability to do so. This implies that reducing strategic uncertainty about a competitor’s behavior has a stronger effect on information flows than reducing environmental uncertainty (about the competitor’s ability). We further show how a players’ experience within, and across, episodes of information exchange drives beliefs about competitors’ behavior. We conclude by discussing managerial implications.