|By:||Aurora García-Gallego (University Jaume I, LEE & Department of Economics)
Penelope Hernández-Rojas (University of Valencia, ERI-CES & Department of Economics Analysis)
Amalia Rodrigo-González (University of Valencia, Department of Corporate Finance)
The theoretical communication model by Gossner et al. (2006) (GHN henceforth) based on the matching pennies game has recently been implemented by García-Gallego et al. (2013) (GHR henceforth) in the lab, emphasizing the transmission of information among players with aligned incentives. The present work contributes to characterize the optimal structure of the equilibrium strategies or the set up under consideration. Also, we establish the length of the sequence of the experimental game for which the players’ optimal strategy is the majority rule, considering a minimal length of 3. Finally, we aim at testing the model by GHN (2006). Experimental findings give! support to the theoretical results in GHN (2006).
|Keywords:||experiments, coordination, cheap-talk, efficiency|
|JEL:||D8 C91 C73|