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Participation

Author

Listed:
  • Gary Charness
  • Martin Dufwenberg

Abstract

We show experimentally that whether and how communication achieves beneficial social outcomes in a hidden-information context depends crucially on whether low-talent agents can participate in a Pareto-improving outcome. Communication is effective (and patterns of lies and truth quite systematic) when this is feasible, but otherwise completely ineffective. We examine the data in light of two potentially relevant behavioral models: cost-of-lying and guilt-fromblame. (JEL D82, D83, Z13)

Suggested Citation

  • Gary Charness & Martin Dufwenberg, 2011. "Participation," American Economic Review, American Economic Association, vol. 101(4), pages 1211-1237, June.
  • Handle: RePEc:aea:aecrev:v:101:y:2011:i:4:p:1211-37
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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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    1. Participation (AER 2011) in ReplicationWiki

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