The effects of pre-play communication in a coordination game with incomplete information

Youxin Hu, John Kagel, Huanxing Yang and Lan Zhang

Journal of Economic Behavior & Organization, 2020, vol. 176, issue C, 403-415

Abstract: The effects of pre-play communication in a battle-of-the-sexes game with incomplete information regarding players’ intensity of preferences is compared to the game with no communication. Pre-play communication significantly increases payoffs and the probability of coordination, while reducing miscoordination. Communication is largely informative. A key prediction of the theory, that when two players send different messages, they coordinate on the preferred action of the agent sending the higher message, is generally satisfied. As predicted, communication becomes more informative as the cost of miscoordination increases.

Keywords: Coordination game; Private information; Pre-play communication; Experiment (search for similar items in EconPapers)
JEL-codes: D23 D74 D82 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jeborg:v:176:y:2020:i:c:p:403-415

DOI: 10.1016/j.jebo.2020.04.003

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