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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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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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This paper examines whether and how cheap talk communication can facilitate within-group coordination when two unequal … different in this control treatment. Cheap talk communication thus completely solves miscoordination within groups and makes … group members act as a single agent. Furthermore, it is the larger group that benefits from communication at the expense of …
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-talk communication raises efficiency in bilateral contracting situations with adverse selection. We replicate their finding and check its … robustness by introducing competition between agents. We find that communication and competition act as "substitutes …:" communication raises efficiency in the absence of competition but lowers efficiency with competition, and competition raises …
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