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 … hide inconvenient truths? We consider a sequential 2-player public good game in which the leader has private information … prisoners’ dilemma. Without verbal communication, efficiency is achieved, with contributions for high or intermediate values …