• Title of article

    What makes cheap talk effective? Experimental evidence

  • Author/Authors

    Gary Charness، نويسنده , , Brit Grosskopf، نويسنده ,

  • Issue Information
    روزنامه با شماره پیاپی سال 2004
  • Pages
    7
  • From page
    383
  • To page
    389
  • Abstract
    In some environments, a player only learns the choice of another player if he or she undertakes a risky choice. While costless preplay communication (cheap talk) has been found to be effective in experimental coordination games, participants have typically learned both own payoffs and the other playerʹs action. Are both of these components necessary for cheap talk to be effective? In our 2×2 stag hunt game, the safe choice always yields the same payoff, so that information about payoffs does not always identify the other playerʹs action. We vary whether information is provided about the other personʹs play, and whether costless one-way messages can be sent before action choices are made. We find that information provision about the other personʹs play increases coordination when there are messages, but otherwise has no effect.
  • Keywords
    Cheap Talk , Payoff information , Experimental methodology , Coordination
  • Journal title
    Economics Letters
  • Serial Year
    2004
  • Journal title
    Economics Letters
  • Record number

    435435