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We put forward a model of private goods with externalities. Agents derive benefit from communicating with each other. In order to communicate they need to have a language in common. Learning languages is costly. In this setting no individually rational and feasible Groves mechanism exists. We...
Persistent link: https://www.econbiz.de/10009565542
Costless pre-play communication has been found to effectively facilitate coordination and enhance efficiency in games … costly efforts. Allowing intra-group communication leads to more aggressive competition and greater coordination than control … treatments without any communication. On the other hand, allowing inter-group communication leads to less destructive competition …
Persistent link: https://www.econbiz.de/10014191492
We put forward a model of private goods with externalities. Agents derive benefit from communicating with each other. In order to communicate they need to have a language in common. Learning languages is costly. In this setting no individually rational and feasible Groves mechanism exists. We...
Persistent link: https://www.econbiz.de/10014167264