TY - RPRT A1 - Bruttel, Lisa Verena A1 - Petrishcheva, Vasilisa T1 - Does communication increase the precision of beliefs? T2 - CEPA Discussion Papers N2 - In this paper, we study one channel through which communication may facilitate cooperative behavior – belief precision. In a prisoner’s dilemma experiment, we show that communication not only makes individuals more optimistic that their partner will cooperate but also increases the precision of this belief, thereby reducing strategic uncertainty. To disentangle the shift in mean beliefs from the increase in precision, we elicit beliefs and precision in a two-stage procedure and in three situations: without communication, before communication, and after communication. We find that the precision of beliefs increases during communication. T3 - CEPA Discussion Papers - 74 KW - prisoner’s dilemma KW - communication KW - beliefs KW - strategic uncertainty KW - experiment Y1 - 2024 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-629367 SN - 2628-653X IS - 74 SP - 1 EP - 33 ER - TY - JOUR A1 - Bruttel, Lisa Verena A1 - Güth, Werner A1 - Nithammer, Juri A1 - Orland, Andreas T1 - Inefficient cooperation under stochastic and strategic uncertainty JF - Conflict resolution N2 - Stochastic uncertainty can cause coordination problems that may hinder mutually beneficial cooperation. We propose a mechanism of ex-post voluntary transfers designed to circumvent these coordination problems and ask whether it can increase efficiency. To test this transfer mechanism, we implement a controlled laboratory experiment based on a repeated Ultimatum Game with a stochastic endowment. Contrary to our hypothesis, we find that allowing voluntary transfers does not lead to an efficiency increase. We suggest and analyze two major reasons for this failure: first, stochastic uncertainty forces proposers intending to cooperate to accept high strategic uncertainty, which many proposers avoid; second, many responders behave only incompletely conditionally cooperatively, which hinders cooperation in future periods. KW - stochastic uncertainty KW - strategic uncertainty KW - cooperation KW - Ultimatum KW - Game KW - experiment Y1 - 2022 U6 - https://doi.org/10.1177/00220027211066614 SN - 0022-0027 SN - 1552-8766 VL - 66 IS - 4-5 SP - 755 EP - 782 PB - Sage Publ. CY - Thousand Oaks ER - TY - RPRT A1 - Bruttel, Lisa Verena A1 - Güth, Werner A1 - Nithammer, Juri A1 - Orland, Andreas T1 - Inefficient Cooperation under Stochastic and Strategic Uncertainty T2 - CEPA Discussion Papers N2 - Stochastic uncertainty can cause difficult coordination problems that may hinder mutually beneficial cooperation. We propose a mechanism of ex-post voluntary transfers designed to circumvent these coordination problems and ask whether it can do so. To test this, we implement a controlled laboratory experiment based on a repeatedly played Ultimatum Game with a stochastic endowment. Contrary to our hypothesis, we find that allowing voluntary transfers does not entail an efficiency increase. We suggest and analyze two main reasons for this finding: First, the stochastic uncertainty forces proposers to accept high strategic uncertainty if they intend to cooperate by claiming a low amount (which many proposers do not). Second, many responders behave only incompletely conditionally cooperative by transferring too little (which hinders cooperation in future periods). T3 - CEPA Discussion Papers - 20 KW - stochastic uncertainty KW - strategic uncertainty KW - cooperation KW - Ultimatum Game KW - experiment Y1 - 2020 U6 - http://nbn-resolving.de/urn/resolver.pl?urn:nbn:de:kobv:517-opus4-475500 SN - 2628-653X IS - 20 ER -