Reverberation effect of communication in a public goods game.

ABSTRACT: Using a public goods laboratory experiment, this paper analyzes the extent to which face-to-face communication keeps its efficiency gains even after its removal. This is important as communication in real world is costly (e.g. time). If the effect of communication is long-lasting, the number of communication periods could be minimized. This paper provides evidence that there is a lasting positive effect on contributions even after communication was removed. Yet, after the removal, the contributions are lower and abate over time to the previous magnitude. This is referred to as the reverberation effect of communication. As we do not observe an effect of endogenizing communication, the strongest driver of the size of the contributions is the existence of communication or its reverberation. E

SUBMITTER: Bershadskyy D 

PROVIDER: S-EPMC9970058 | biostudies-literature | 2023

REPOSITORIES: biostudies-literature