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Communication, Coordination and Networks

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  • Choi, Syngjoo
  • Lee, Jihong

Abstract

We study experimentally how the network structure and length of pre-play communication affect behavior and outcome in a multi-player coordination game with conflicting preferences. Network structure matters but the interaction between network and time effects is more subtle. Under each time treatment, substantial variations are observed in both the rate of coordination and distribution of coordinated outcomes across networks. But increasing the communication length improves both efficiency an equity of coordination. In all treatments, coordination is mostly explained by convergence in communication. We also identify behaviors that explain variations in the distribution of coordinated outcomes both within and across networks.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 19055.

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Date of creation: 20 Nov 2009
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Handle: RePEc:pra:mprapa:19055

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Keywords: experiment; pre-play communication; coordination; network; efficiency; equity;

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References

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  1. Choi, Syngjoo & Gale, Douglas & Kariv, Shachar & Palfrey, Thomas, . "Network architecture, salience and coordination," Working Papers, California Institute of Technology, Division of the Humanities and Social Sciences 1291, California Institute of Technology, Division of the Humanities and Social Sciences.
  2. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, Econometric Society, vol. 50(6), pages 1431-51, November.
  3. Chwe, Michael Suk-Young, 2000. "Communication and Coordination in Social Networks," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 67(1), pages 1-16, January.
  4. Cooper, Russell, et al, 1992. "Communication in Coordination Games," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 107(2), pages 739-71, May.
  5. Jeanne Hagenbach & Frédéric Koessler, 2010. "Strategic Communication Networks," Review of Economic Studies, Oxford University Press, vol. 77(3), pages 1072-1099.
  6. COOPER, R. & DEJONG, D.V. & FORSYTHE, R. & Tom Ross, 1989. "Communication In Coordination Games," Carleton Industrial Organization Research Unit (CIORU), Carleton University, Department of Economics 89-07, Carleton University, Department of Economics.
  7. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, Springer, vol. 10(2), pages 171-178, June.
  8. COOPER, R. & DEJONG, D.V. & FORSYTHE, R. & Tom Ross, 1989. "Communication In The Battle Of The Sexes Game," Carleton Industrial Organization Research Unit (CIORU), Carleton University, Department of Economics 89-03, Carleton University, Department of Economics.
  9. Joseph Farrell, 1987. "Cheap Talk, Coordination, and Entry," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 34-39, Spring.
  10. Andrea Galeotti & Christian Ghiglino & Francesco Squintani, 2009. "Strategic Information Transmission in Networks," Economics Discussion Papers, University of Essex, Department of Economics 668, University of Essex, Department of Economics.
  11. Robert J. Aumann & Sergiu Hart, 2003. "Long Cheap Talk," Econometrica, Econometric Society, Econometric Society, vol. 71(6), pages 1619-1660, November.
  12. Antoni Calvó-Armengol & Joan de Martí, 2007. "Communication Networks: Knowledge and Decisions," American Economic Review, American Economic Association, American Economic Association, vol. 97(2), pages 86-91, May.
  13. Kosfeld Michael, 2004. "Economic Networks in the Laboratory: A Survey," Review of Network Economics, De Gruyter, De Gruyter, vol. 3(1), pages 1-23, March.
  14. repec:rne:rneart:v:3:y:2004:i:1:p:19-41 is not listed on IDEAS
  15. Crawford, Vincent, 1998. "A Survey of Experiments on Communication via Cheap Talk," Journal of Economic Theory, Elsevier, Elsevier, vol. 78(2), pages 286-298, February.
  16. Alfred D. Chandler, 1969. "Strategy and Structure: Chapters in the History of the American Industrial Enterprise," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262530090, December.
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Cited by:
  1. Mengel Friederike & Romero José Gabriel & Kovarik Jaromir, 2009. "(Anti-) Coordination in Networks," Research Memorandum 041, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  2. Gary Charness & Francesco Feri & Miguel A. Meléndez-Jiménez & Matthias Sutter, 2014. "Experimental games on networks: Underpinnings of behavior and equilibrium selection," Working Papers, Faculty of Economics and Statistics, University of Innsbruck 2014-14, Faculty of Economics and Statistics, University of Innsbruck.

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