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An Experimental Study on the Effects of Communication, Credibility, and Clustering in Network Games

Author

Listed:
  • Gary Charness

    (University of California at Santa Barbara, IZA Bonn, and CESifo Munich)

  • Francesco Feri

    (Royal Holloway University of London)

  • Miguel A. Meléndez-Jiménez

    (Universidad de Málaga)

  • Matthias Sutter

    (Max Planck Institute for Research on Collective Goods, University of Cologne, and University of Innsbruck)

Abstract

We examine how preplay communication and clustering affect play in a challenging hybrid experimental game on networks. Free-form chat is impressively effective in achieving the nonequilibrium efficient outcome, but restricted communication has little effect. We support this result with a model about the credibility of cheap-talk messages. We also offer a model of message diffusion that correctly predicts more rapid diffusion without clustering. We show an interaction effect of network structure and communication technologies. A remarkable result is that restricted communication is quite effective in a network stag hunt but not in our extended game.

Suggested Citation

  • Gary Charness & Francesco Feri & Miguel A. Meléndez-Jiménez & Matthias Sutter, 2023. "An Experimental Study on the Effects of Communication, Credibility, and Clustering in Network Games," The Review of Economics and Statistics, MIT Press, vol. 105(6), pages 1530-1543, November.
    • Handle: RePEc:tpr:restat:v:105:y:2023:i:6:p:1530-1543
    DOI: 10.1162/rest_a_01150
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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation

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