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We let participants indicate their intended action in a repeated game experiment where actions are implemented with … participants lied at least occasionally). As a result, communication has a positive effect on cooperation when the payoff matrix … makes the returns to cooperation high; when the payoff matrix gives a lower return to cooperation, communication reduces …
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Nash equilibrium takes optimization as a primitive, but suboptimal behavior can persist in simple stochastic decision problems. This has motivated the development of other equilibrium concepts such as cursed equilibrium and behavioral equilibrium. We experimentally study a simple adverse...
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