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We report experimental evidence showing a positive effect of redistribution on economic efficiency via the self-enforcement of property rights, and identify which status groups benefit more and which less. We model an economy in which wealth is produced if players voluntarily comply with...
Persistent link: https://www.econbiz.de/10014504242
We studied how communication media affect trust game play. Three popular media were considered: traditional face …-to-face, Facebook groups, and anonymous online chat. We considered post-communication changes in players' expectations and preferences …, and further analyzed the contents of group communications to understand the channels though which communication appears to …
Persistent link: https://www.econbiz.de/10013200046
We design experimental games to evaluate the predictive power of the first cheap-talk refinement, neologism …
Persistent link: https://www.econbiz.de/10012215363
This paper investigates how different message structures impact communication strategy as well as sender and receiver … behavior. Specifically, we focus on comparing communication games with messages stating an intention versus a request. Our …
Persistent link: https://www.econbiz.de/10013200074
We investigate strategic information transmission with communication error, or noise. Our main finding is that adding … it possible to achieve the best payoff that can be obtained by means of any communication device. As in the model without …
Persistent link: https://www.econbiz.de/10011599393
A committee decides by unanimity whether to accept the current alternative, or to continue costly search. Each alternative is described by a vector of distinct attributes, and each committee member can privately assess the quality of one attribute (her "specialty"). Preferences are heterogeneous...
Persistent link: https://www.econbiz.de/10011599498
We study intermediaries who seek to maximize gains from trade in bilateral negotiations. Intermediaries are players: they cannot commit to act against their objective function and deny, in some cases, trade they believe to be beneficial. This impairs their ability to assist the parties relative...
Persistent link: https://www.econbiz.de/10013189033
This paper analyzes the coordination challenge a partial cartel faces when payoff asymmetries between potential cartel … can both be supported in a Nash equilibrium. To assess the role of communication both treatments are additionally run with … partial cartels in the modified treatments. In all treatments with communication subjects are more likely to form complete …
Persistent link: https://www.econbiz.de/10014501600
communication, we also find systematic deviations from optimal behavior in how the communicated information is used. Specifically … than predicted coordination in centralized organizations. We show that the observed deviations disappear when uncertainty …
Persistent link: https://www.econbiz.de/10012215386
This study experimentally investigates two possible reasons for cooperative investment decisions in common pool resource games with two players. One reason is strategic behavior: subjects, who are allowed to interact with their partners repeatedly, attempt to build a long-term relationship and...
Persistent link: https://www.econbiz.de/10011988839