studied, but how information affects strategic uncertainty is underexplored. This paper examines how two communication … fundamental and strategic uncertainty. I find that market does not improve coordination because the expectation that coordination … failures will occur is self-fulfilling, while cheap talk improves coordination because the signals of willingness to invest …

implicitly and explicitly), if at all, in such games. In our treatments without communication, players fail to cooperate and … essentially play the static Nash equilibrium (consistent with previous results). With communication, inefficient firms gain at the …

implicitly and explicitly), if at all, in such games. We find that, without communication, players fail to cooperate and … essentially play the static Nash equilibrium, confirming previous results. With communication, inefficient firms gain at the …