Header

UZH-Logo

Maintenance Infos

Communication and efficiency in competitive coordination games


Cason, Timothy N; Sheremeta, Roman M; Zhang, Jingjing (2012). Communication and efficiency in competitive coordination games. Games and Economic Behavior, 76(1):26 - 43.

Abstract

Costless pre-play communication has been found to effectively facilitate coordination and enhance efficiency in games with Pareto-ranked equilibria. We report an experiment in which two groups compete in a weakest-link contest by expending costly efforts. Allowing intra-group communication leads to more aggressive competition and greater coordination than control treatments without any communication. On the other hand, allowing inter-group communication leads to less destructive competition. As a result, intra-group communication decreases while inter-group communication increases payoffs. Our experiment thus provides an example of an environment where communication can either enhance or damage efficiency. This contrasts sharply with experimental findings from public goods and other coordination games, where communication always enhances efficiency and often leads to socially optimal outcomes.

Abstract

Costless pre-play communication has been found to effectively facilitate coordination and enhance efficiency in games with Pareto-ranked equilibria. We report an experiment in which two groups compete in a weakest-link contest by expending costly efforts. Allowing intra-group communication leads to more aggressive competition and greater coordination than control treatments without any communication. On the other hand, allowing inter-group communication leads to less destructive competition. As a result, intra-group communication decreases while inter-group communication increases payoffs. Our experiment thus provides an example of an environment where communication can either enhance or damage efficiency. This contrasts sharply with experimental findings from public goods and other coordination games, where communication always enhances efficiency and often leads to socially optimal outcomes.

Statistics

Citations

33 citations in Web of Science®
35 citations in Scopus®
Google Scholar™

Altmetrics

Downloads

94 downloads since deposited on 28 Jan 2013
23 downloads since 12 months
Detailed statistics

Additional indexing

Item Type:Journal Article, refereed, original work
Communities & Collections:03 Faculty of Economics > Department of Economics
Dewey Decimal Classification:330 Economics
Language:English
Date:2012
Deposited On:28 Jan 2013 15:57
Last Modified:07 Dec 2017 19:03
Publisher:Elsevier
ISSN:0899-8256
Publisher DOI:https://doi.org/10.1016/j.geb.2012.05.001
Other Identification Number:merlin-id:7771

Download

Download PDF  'Communication and efficiency in competitive coordination games'.
Preview
Content: Accepted Version
Filetype: PDF
Size: 333kB
View at publisher