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-binding communication among responders can help coordinate their collective resistance against a leader who transgresses against them …. Contrary to the predictions of analysis based on purely self-regarding preferences, we find that non-binding communication …, we find that the incidence of no transgression increases from 7 percent with no communication up to 25-37 percent …
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-binding communication among responders can help coordinate their collective resistance against a leader who transgresses against them …. Contrary to the predictions of analysis based on purely self-regarding preferences, we find that non-binding communication …, we find that the incidence of no transgression increases from 7 percent with no communication up to 25-37 percent …
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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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