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Perturbed communication games with honest senders and naive receivers

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  • Chen, Ying
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    Abstract

    This paper studies communication games in which the sender is possibly honest (tells the truth) and the receiver is possibly naive (follows messages as if truthful). The characterization of message-monotone equilibria in the perturbed games explain several important aspects of strategic communication including sender exaggeration, receiver skepticism and message clustering. Surprisingly, the strategic receiver may respond to more aggressive claims with more moderate actions. In the limit as the probabilities of the non-strategic players approach zero, (i) the limit equilibrium corresponds to a most-informative equilibrium of the limit (Crawford-Sobel) game; (ii) only the top messages are sent.

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    File URL: http://www.sciencedirect.com/science/article/B6WJ3-50XCY91-1/2/76daa3fc229018b7a41486ddb706c665
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    Bibliographic Info

    Article provided by Elsevier in its journal Journal of Economic Theory.

    Volume (Year): 146 (2011)
    Issue (Month): 2 (March)
    Pages: 401-424

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    Handle: RePEc:eee:jetheo:v:146:y:2011:i:2:p:401-424

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    Web page: http://www.elsevier.com/locate/inca/622869

    Related research

    Keywords: Communication Honest senders Naive receivers Sender exaggeration Receiver skepticism Clustering of messages Non-monotone receiver reaction Finite message space Existence;

    References

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    Cited by:
    1. Andreas Blume & Ernest K. Lai & Wooyoung Lim, 2013. "Eliciting Private Information with Noise: The Case of Randomized Response," Working Papers 490, Bielefeld University, Center for Mathematical Economics.
    2. Daron Acemoglu & Alexander Wolitzky, 2012. "Cycles of Distrust: An Economic Model," Levine's Working Paper Archive 786969000000000502, David K. Levine.
    3. Dziuda, Wioletta, 2011. "Strategic argumentation," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1362-1397, July.
    4. Irene Valsecchi, 2013. "The expert problem: a survey," Economics of Governance, Springer, vol. 14(4), pages 303-331, November.
    5. Irene Valsecchi, 2013. "Non-uniqueness of equilibrium action profiles with equal size in one-shot cheap-talk games," Theory and Decision, Springer, vol. 74(1), pages 31-53, January.

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