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Communication structure and coalition-proofness: experimental evidence

Author

Listed:
  • Gilles GRANDJEAN
  • Marco MANTOVANI
  • Ana MAULEON
  • Vincent VANNETELBOSCH

Abstract

The paper analyzes the role of the structure of communication—i.e. who is talking with whom—in a coordination game. We run an experiment in a three-player game with Pareto ranked equilibria, where a pair of players has a profitable joint deviation from the Pareto-superior equilibrium. We show that specific communication structures lead to different ‘coalition-proof’ equilibria in this game. Results match the theoretical predictions. Subjects communicate and play the Pareto-superior equilibrium when communication is public. When pairs of players exchange messages privately, subjects play the Pareto-inferior equilibrium. Even in these latter cases, however, players’ beliefs and choices tend to react to messages, despite the fact that these are not credible.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Gilles GRANDJEAN & Marco MANTOVANI & Ana MAULEON & Vincent VANNETELBOSCH, 2017. "Communication structure and coalition-proofness: experimental evidence," LIDAM Reprints CORE 2833, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    • Handle: RePEc:cor:louvrp:2833
    Note: In : European Economic Review, 94, 90-102, 2017
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    Cited by:

    1. Federica Alberti & César Mantilla, 2024. "Correction to: A mechanism requesting prices and quantities may increase the provision of heterogeneous public goods," Experimental Economics, Springer;Economic Science Association, vol. 27(1), pages 271-271, March.
    2. Kim, Jeong Yeol, 2025. "Delegation and strategic collusion under antitrust policies: An experiment," China Economic Review, Elsevier, vol. 90(C).
    3. Timothy Flannery & Siyu Wang, 2023. "Is the “smoke‐filled room” necessary? An experimental study of the effect of communication networks on collusion," Southern Economic Journal, John Wiley & Sons, vol. 89(4), pages 1056-1077, April.

    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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