We examine experimentally the impact of communication on trust and cooperation. Our design admits observation of … avoid guilt, as can be modeled using psychological game theory. When players exhibit such guilt aversion, communication may …

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 … overall cooperation. These results suggest that cheap talk communication can promote cooperation in repeated games, but only …

I experimentally investigate how vague language changes the nature of communication in a biased strategic information … model showing that vague messages increase communication between boundedly rational players, especially if some senders are …

cooperation between these two. Interestingly, there is an external effect of insider communication: the first player who is … among three players. The baseline treatment with no communication shows that the first and second players send significant … amounts and the third player reciprocates. Allowing insider communication between the second and the third players increases …

Individuals and two-person teams play a hidden - action trust game with pre - play communication. We replicate previous … results for individuals that non-binding promises increase cooperation rates. But this does not extend to teams. Wh ile teams …

-to-person lending. We show that potential hiddenaction undermines the positive effect of communication on repayment behavior and …