We study communication in a two-player coordination game with Pareto-ranked equilibria. Prior research demonstrates … that efficient coordination is difficult without communication but obtains regularly with (mandatory) costless pre …-play messages. In a laboratory experiment, we modify communication by making the sending of messages optional and costly. Even small …

equally in groups of optimal size and there is no communication. In this paper we investigate the impact of introducing … communication groups that may or may not be linked to output sharing groups. Communication reduces shirking, increases aggregate … effort and reduces aggregate rents, but only when communication groups and output-sharing groups are linked. The effect is …

that the firm`s shareholders agree on the same set of beliefs. Therefore we introduce some communication network into the … that competitive equilibria with communication of shareholders and a relevant financial policy of the firm are Pareto …