کد مقاله | کد نشریه | سال انتشار | مقاله انگلیسی | نسخه تمام متن |
---|---|---|---|---|
5072990 | 1373527 | 2007 | 19 صفحه PDF | دانلود رایگان |
![عکس صفحه اول مقاله: Cheap talk, efficiency and egalitarian cost sharing in joint projects Cheap talk, efficiency and egalitarian cost sharing in joint projects](/preview/png/5072990.png)
Rarely, if ever, do parties contemplating a joint project commit resources without engaging in non-binding discussions about who does what. To examine the role of such discussions, we model the investment decision as a voluntary contribution game where each player is privately informed of her benefit from project's completion. Efficiency of every equilibrium of this game is improved when a prior stage of communication is allowed. Interestingly, this improvement can be achieved in “simple equilibria” where a player simply announces whether (not how much) she plans to contribute.With symmetric priors, the simple equilibrium that maximizes either utilitarian ex ante welfare or the probability of completion has a curiously egalitarian feature-whenever the project is completed, each party contributes exactly half the cost, independent of private information.
Journal: Games and Economic Behavior - Volume 60, Issue 1, July 2007, Pages 1-19