14:00 - 15:30
Parallel track
Room: B. van Zuylenzaal
To listen or not to listen. An experimental study of optional communication
Jordi Brandts 1, Lingbo Huang 2, Erte Xiao 3
1 Instituto de Análisis Economico (CSIC) and Barcelona GSE, Barcelona, Spain, Barcelona
2 Nanjing Audit University, Nanjing
3 Monash University, Melbourne

In a one-shot two-person lab experiment we study how behavior is affected by whether player 1 reads the message that player 2 has sent him/her. The issue of one’s communication being considered is relevant in organizations, bargaining and in public decision-making. Our work is motivated by our general interest in how free-form communication affects economic behavior. We have data from three treatments: Optional Communication (N=220), Fixed Communication (N=110) and No Communication (N=110), with the two latter treatments acting as controls. The experiment has two stages. In stage 1 of Optional Communication, player 1 has to choose between two payoff distributions affecting both players 1 and 2. Before player 1 makes the decision, player 2 can send a free-form message to player 1. Before player 1 makes the decision he can choose to read the message or not. In stage 2, player 2 can reward or punish player 1. We study behavior in two different tasks, which differ in the two payoff distributions that are possible. In task 1 (task 2) player 1 has to choose between the following payoff distributions: A ($24, $6) and B ($18, $12) (A ($24, $6) B ($4, $26)). In task 1 player’s 1 decision can be easily influenced by player 2’s message, whereas in task 2 it seems less likely that player 1 can be influenced. The experiments were run at the MONLEE lab at Monash using z-tree. The results show that player 2’s behavior is consistent with reacting differently to kind and unkind treatment and not by whether he/she is listened to or not. Player 1’s behavior is consistent with curiosity or respect and not with the exploitation of moral wiggle room or self-image concerns. We relate our results to several models of social preferences.


Reference:
Th-Communication-4
Session:
Communication
Presenter/s:
Jordi Brandts
Room:
B. van Zuylenzaal
Date:
Thursday, 2 May
Time:
14:00 - 15:30
Session times:
14:00 - 15:30