Informed players use cheap talk to dominate game outcomes strategically.
Researchers conducted experiments to see if players in games with incomplete information can use communication to coordinate their actions strategically. They found that when players face a prisoner's dilemma, they both prefer to enter the market alone. In contrast, in a stag-hunt game, it is better for both players to stay out of the market. The effectiveness of communication in achieving coordination depends on the relationship between risks and payoffs, with informed players benefiting from communication only when risks are low.