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This paper experimentally investigates free-riding behavior on communication cost in a coordination game and finds … strong indications of such free-riding. Firstly, the subjects wait for others to send a message when communication is costly …, which does not happen when communication is costless. Secondly, the proportion of games where no communication or one …
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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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reveals that such intra-play communication after capacity but before price choices has a collusive effect only for capacity …
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