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Miguel A. Meléndez-Jiménez
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Journal Articles
Publisher: Journals Gateway
The Review of Economics and Statistics (2023) 105 (6): 1530–1543.
Published: 17 November 2023
Abstract
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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.
Includes: Supplementary data