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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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We report on an experiment using video technology to manipulate pre-play communication protocols in the lab and to … study purely social effects of communication on donations and discrimination between potential receivers. The experimental … the latter decides on her gifts. Through the use of three communication setups (none, audio, and audio-visual) we show and …
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