More Communication, Less Cooperation: Experimental Evidence from Multi-stage Games
It 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.
|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
References listed on IDEAS
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.:
- 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.
- van Damme, Eric, 1989.
"Renegotiation-proof equilibria in repeated prisoners' dilemma,"
Journal of Economic Theory,
Elsevier, vol. 47(1), pages 206-217, February.
- van Damme, E.E.C., 1989. "Renegotiation-proof equilibria in repeated prisoners' dilemma," Other publications TiSEM df9180a1-537e-4331-9f2a-7, Tilburg University, School of Economics and Management.
- van Damme,Eric, 1986. "Renegotiation-proof equilibria in repeated Prisoner`s dilemma," Discussion Paper Serie A 84, University of Bonn, Germany.
- 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.
- 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.
- Farrell, Joseph & Maskin, Eric, 1987.
"Renegotiation in Repeated Games,"
Department of Economics, Working Paper Series
qt9wv3h5jb, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Ellingsen, Tore & Johannesson, Magnus & Lilja, Jannie & Zetterqvist, Henrik, 2006.
"Trust and truth,"
SSE/EFI Working Paper Series in Economics and Finance
665, Stockholm School of Economics.
- 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.
- Crawford, Vincent, 1998. "A Survey of Experiments on Communication via Cheap Talk," Journal of Economic Theory, Elsevier, vol. 78(2), pages 286-298, February.
When requesting a correction, please mention this item's handle: RePEc:hhs:lunewp:2007_004. See general information about how to correct material in RePEc.
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.