LAUSR

We study several pre-communication protocols in a coordination game with incomplete information. Under decentralized decision making, we show that informative communication can be sustained in equilibrium, yet miscoordination arises with positive probabilities. Moreover, the equilibrium takes a partitional structure and messages are rank ordered, with higher messages becoming increasingly imprecise. Compared to centralized decision making (a mediator without commitment), decentralization leads to more informative communication when the miscoordination cost is high, and performs better when the miscoordination cost is intermediate. We also study the case in which the mediator is able to commit to a decision rule beforehand.