games with costless communication. CMR is a non-equilibrium theory combining rationalizability with the idea that players …

firms. Communication is often abused for explicit agreements and this strongly reduces competition. …

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 …

which support the theory remarkably well. In the stochastic variant, there is more signalling behavior than with …

-firm Cournot framework to test these predictions, and we also explore the impact communication has on buyer groups. The … experimental results show that buyer groups lead to lower outputs when groups can exclude single firms. Communication is identified … as a main factor causing collusive product markets. -- buyer groups ; cartels ; collusion ; communication ; experiments …

In a Bertrand-oligopoly experiment, firms choose whether or not to engage in cartel-like communication and, if so, they …

We explore the difference between explicit and tacit collusion by investigating the impact communication has in … largest additional profit from talking. We also find that industries continue to collude successfully after communication is … disabled. Communication supports fims in coordinating on collusive pricing schemes, and it is also used for conflict mediation …