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Which Words Bond? An Experiment on Signaling in a Public Good Game (replaced by CentER DP 2011-139)

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  • Serra Garcia, M.
  • Damme, E.E.C. van
  • Potters, J.J.M.

    (Tilburg University, Center for Economic Research)

Abstract

We compare signaling by words and actions in a one-shot 2-person public good game with private information. The informed player, who knows the exact return from contributing, can signal by contributing first (actions) or by sending a costless message (words). Words can be about the return or about her contribution decision. Theoretically, actions lead to fully e¢ cient contributions. Words can be as influential as actions, and thus elicit the uninformed player's contribution, but allow the informed player to free-ride. The exact language used is not expected to matter. Experimentally, we find that words can be as influential as actions. Free-riding, however, does depend on the language: the informed player free-rides less when she talks about her contribution than when she talks about the returns.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2010-33.

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Date of creation: 2010
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Handle: RePEc:dgr:kubcen:201033

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Web page: http://center.uvt.nl

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Keywords: Information transmission; costly signaling; communication; experiment;

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References

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Citations

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Cited by:
  1. Serra Garcia, M. & Damme, E.E.C. van & Potters, J.J.M., 2010. "Hiding an Inconvenient Truth: Lies and Vagueness (Revision of DP 2008-107)," Discussion Paper 2010-80, Tilburg University, Center for Economic Research.
  2. Adrian de Groot Ruiz & Theo Offerman & Sander Onderstal, 2011. "Equilibrium Selection in Cheap Talk Games: ACDC rocks when Other Criteria remain silent," Tinbergen Institute Discussion Papers 11-037/1, Tinbergen Institute, revised 31 Oct 2011.
  3. Thomas de Haan & Theo Offerman & Randolph Sloof, 2011. "Money talks? An Experimental Investigation of Cheap Talk and Burned Money," Tinbergen Institute Discussion Papers 11-069/1, Tinbergen Institute.
  4. Adrian de Groot Ruiz & Theo Offerman & Sander Onderstal, 2011. "An Experimental Study of Credible Deviations and ACDC," Tinbergen Institute Discussion Papers 11-153/1, Tinbergen Institute.

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