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Department of Economics, Lund University Working Papers, Department of Economics, Lund University

No 2010:10:
Free-riding on Communication: An Experimental Study

Ola Andersson () and Håkan J. Holm ()

Abstract: This paper experimentally investigates free-riding behavior on communication cost in a coordination game and finds strong indications of such free-riding. Firstly, the subjects tend to wait for others to send a message when communication is costly, which does not happen when communication is costless. Secondly, the proportion of games where no communication takes place is much higher when communication is costly compared to when it is free. Thirdly, the form of communication also strongly suggests free-riding.

Keywords: Free-riding; Communication; Coordination; (follow links to similar papers)

JEL-Codes: C72; C91; D43; (follow links to similar papers)

18 pages, September 1, 2010, Revised March 3, 2011

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