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How does communication affect beliefs in one-shot games with complete information?

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  • Ellingsen, Tore
  • Östling, Robert
  • Wengström, Erik

Abstract

This paper experimentally studies unilateral communication of intentions in eight different two-player one-shot normal form games with complete information. We find that communication is used both to coordinate and to deceive, and that messages have a significant impact on beliefs and behavior even in dominance solvable games. Nash equilibrium and cognitive hierarchy jointly account for many regularities, but not all of the evidence. Sophisticated sender behavior is especially difficult to reconcile with existing models.

Suggested Citation

  • Ellingsen, Tore & Östling, Robert & Wengström, Erik, 2018. "How does communication affect beliefs in one-shot games with complete information?," Games and Economic Behavior, Elsevier, vol. 107(C), pages 153-181.
    • Handle: RePEc:eee:gamebe:v:107:y:2018:i:c:p:153-181
    DOI: 10.1016/j.geb.2017.11.004
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    More about this item

    Keywords

    Cheap talk; Pre-play communication; Noncooperative game theory;
    All these keywords.

    JEL classification:

    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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