Which Improves Efficiency, Changing or Monitoring Messages, in Continuous-time Cheap Talk?—Experimental Evidence

Abstract

Continuous-time cheap talk is known to increase the probability of Pareto-efficient outcomes in minimum-effort games. This study analyzes what features of continuous-time cheap talk are important for achieving a Pareto-efficient outcome. In continuous-time cheap talk, players can change their messages as many times as needed and can constantly monitor the distribution of messages in the group. Our analysis shows that message changes do not lead to the achievement of Pareto-efficient outcomes and that monitoring messages is more important for achieving them.