van Damme, Eric; Potters, Jan; Serra Garcia, M. - Tilburg University, Center for Economic Research - 2010
When truth conflicts with efficiency, can verbal communication destroy efficiency? Or are lies or vagueness used to … prisoners’ dilemma. Without verbal communication, efficiency is achieved, with contributions for high or intermediate values …. We show experimentally that, when communication about the value must be precise, the leader frequently lies, preserving …