behavior of others. This may lead to welfare-reducing 'overreactions' to public signals. We present an experiment based on a … extreme case of a pure coordination game, subjects still use their private signals, preventing full coordination … welfare if coordination is socially desirable. …

behavior of others. This may lead to welfare-reducing 'overreactions' to public signals. We present an experiment based on a … extreme case of a pure coordination game, subjects still use their private signals, preventing full coordination … welfare if coordination is socially desirable. -- coordination games ; strategic uncertainty ; private information ; public …

uncertainty in the framework of a 2x2 coordination game, in which one choice leads to the same payoff regardless of the action of … the other person's play. Cheap talk is found to be effective, as there is much more coordination in both Signal treatments … coordination when messages are permitted. However, in the No Signal treatments, the round-to-round changes in choices induced by …