Communication structure and coalition-proofness – Experimental evidence

B-Tier
Journal: European Economic Review
Year: 2017
Volume: 94
Issue: C
Pages: 90-102

Score contribution per author:

0.503 = (α=2.01 / 4 authors) × 1.0x B-tier

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

Abstract

The paper analyzes the role of the structure of communication—i.e. who is talking with whom—in a coordination game. We run an experiment in a three-player game with Pareto ranked equilibria, where a pair of players has a profitable joint deviation from the Pareto-superior equilibrium. We show that specific communication structures lead to different ‘coalition-proof’ equilibria in this game. Results match the theoretical predictions. Subjects communicate and play the Pareto-superior equilibrium when communication is public. When pairs of players exchange messages privately, subjects play the Pareto-inferior equilibrium. Even in these latter cases, however, players’ beliefs and choices tend to react to messages, despite the fact that these are not credible.

Technical Details

RePEc Handle
repec:eee:eecrev:v:94:y:2017:i:c:p:90-102
Journal Field
General
Author Count
4
Added to Database
2026-01-24