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An equilibrium is communication-proof if it is unaffected by new opportunities to communicate and renegotiate. We … characterize the set of equilibria of coordination games with preplay communication in which players have private preferences over … the feasible coordinated outcomes. Communication-proof equilibria provide a narrow selection from the large set of …
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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 …
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Chakraborty and Harbaugh (2010) prove the existence of influential cheap talk equilibria in one sender one receiver games when the state is multidimensional and the preferences of the sender are state-independent. We show that only the babbling equilibrium survives the introduction of any small...
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In capacity-then-price-setting games, soft capacity constraints are planned sales amounts where producing above capacity is possible but more costly. While the subgame perfect equilibrium predicts equal prices, experimental evidence often reveals price discrepancies. This failure to coordinate...
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Costless pre-play communication has been found to effectively facilitate coordination and enhance efficiency in games … costly efforts. Allowing intra-group communication leads to more aggressive competition and greater coordination than control … treatments without any communication. On the other hand, allowing inter-group communication leads to less destructive competition …
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Costless pre-play communication has been shown to effectively facilitate within-group coordination. However, in … costly efforts. We find that allowing within-group communication makes groups compete more aggressively. When only one group …. However, the communicating group earns payoffs that are not different from the baseline contest without any communication …
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