More Communication, Less Cooperation: Experimental Evidence from Multi-stage Games
AbstractIt is well known that communication often serves as a facilitator for cooperation in static games. Yet, communication can serve entirely different purposes in dynamic settings as communication during the game may work as a means for renegotiation, potentially undermining the credibility of cooperative strategies. To explore this issue, this paper experimentally investigates cooperation and non-binding communication in a two-stage game. More specifically, two treatments are considered: one with only pre-play communication and one where subjects can also communicate intra-play between the stages of the game. The results highlight a nontrivial difference concerning the effects of pre-play communication between the two treatments. Pre-play communication only has a significant impact on cooperation when no intraplay communication is possible. The results suggest that the credibility of pre-play messages may depend crucially on future communication opportunities.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Lund University, Department of Economics in its series Working Papers with number 2007:4.
Length: 29 pages
Date of creation: 21 Feb 2007
Date of revision: 24 Nov 2010
Contact details of provider:
Postal: Department of Economics, School of Economics and Management, Lund University, Box 7082, S-220 07 Lund,Sweden
Phone: +46 +46 222 0000
Fax: +46 +46 2224613
Web page: http://www.nek.lu.se/en
More information through EDIRC
Renegotiation; Communication; Cooperation; Experiments;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-03 (All new papers)
- NEP-CBE-2007-03-03 (Cognitive & Behavioural Economics)
- NEP-EXP-2007-03-03 (Experimental Economics)
- NEP-GTH-2007-03-03 (Game Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bernheim, B. Douglas & Peleg, Bezalel & Whinston, Michael D., 1987. "Coalition-Proof Nash Equilibria I. Concepts," Journal of Economic Theory, Elsevier, vol. 42(1), pages 1-12, June.
- Damme, E.E.C. van, 1989. "Renegotiation-proof equilibria in repeated prisoners' dilemma," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154423, Tilburg University.
- Douglas D. Davis & Charles A. Holt, 1999. "Equilibrium cooperation in two-stage games: Experimental evidence," International Journal of Game Theory, Springer, vol. 28(1), pages 89-109.
- Ellingsen, Tore & Johannesson, Magnus & Lilja, Jannie & Zetterqvist, Henrik, 2006.
"Trust and truth,"
Working Paper Series in Economics and Finance
665, Stockholm School of Economics.
- Crawford, Vincent, 1998. "A Survey of Experiments on Communication via Cheap Talk," Journal of Economic Theory, Elsevier, vol. 78(2), pages 286-298, February.
- Joseph Farrell and Eric Maskin., 1987.
"Renegotiation in Repeated Games,"
Economics Working Papers
8759, University of California at Berkeley.
- Daniel Houser & Erte Xiao & Kevin McCabe & Vernon Smith, 2005.
"When punishment fails: Research on sanctions, intentions and non- cooperation,"
- Houser, Daniel & Xiao, Erte & McCabe, Kevin & Smith, Vernon, 2008. "When punishment fails: Research on sanctions, intentions and non-cooperation," Games and Economic Behavior, Elsevier, vol. 62(2), pages 509-532, March.
- Daniel Houser & Erte Xiao & Kevin McCabe & Vernon Smith, 2005. "When Punishment Fails: Research on Sanctions, Intentions and Non- Cooperation," Experimental 0502001, EconWPA, revised 18 Feb 2005.
- van Damme,Eric, 1986.
"Renegotiation-proof equilibria in repeated Prisoner`s dilemma,"
Discussion Paper Serie A
84, University of Bonn, Germany.
- van Damme, Eric, 1989. "Renegotiation-proof equilibria in repeated prisoners' dilemma," Journal of Economic Theory, Elsevier, vol. 47(1), pages 206-217, February.
- Douglas Bernheim, B. & Ray, Debraj, 1989. "Collective dynamic consistency in repeated games," Games and Economic Behavior, Elsevier, vol. 1(4), pages 295-326, December.
- Blume Andreas, 1994.
"Intraplay Communication in Repeated Games,"
Games and Economic Behavior,
Elsevier, vol. 6(2), pages 181-211, March.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (David Edgerton).
If references are entirely missing, you can add them using this form.