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Project Description

Summary:  View help for Summary We study the effect of communication in an experimental game where cooperation is consistent with equilibrium play if players share an understanding that cheating will be punished. Consistent with communication acting as a coordinating device, credible preplay threats to punish cheating are the most effective message to facilitate collusion. Promises to collude also improve cooperation. Credible threats do not occur in a treatment with a limited message space that permits threats of punishment. Contrary to some theoretical predictions, renegotiation possibilities facilitate collusion.

Scope of Project

Subject Terms:  View help for Subject Terms [collusion, renegotiation, communication, cooperation]
JEL Classification:  View help for JEL Classification
      C71 Cooperative Games
      C73 Stochastic and Dynamic Games; Evolutionary Games; Repeated Games
      D83 Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
      L12 Monopoly; Monopolization Strategies
Universe:  View help for Universe Experimental subjects were undergraduates students at CWRU.
Data Type(s):  View help for Data Type(s) experimental data

Methodology

Data Source:  View help for Data Source Data from experimental sessions.

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