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Cheap Talk Games: Comparing Direct and Simplified Replications

In: Experiments in Organizational Economics

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  • Fu-Wen Hsieh
  • Joseph Tao-yi Wang

Abstract

To study strategic information transmission in organizations, we conduct a simplified version (with only three states) of the sender-receiver game experiment designed by Wang, Spezio, and Camerer (2010), in which an informative sender advises an uninformed receiver to take an action (to match the true state), but has incentives to exaggerate. We also have the same subjects play the original five-state game. We find similar “overcommunication” behavior with Taiwanese subjects – messages reveal more information about the true state than what equilibrium predicts – that let us classify subjects into various level-ktypes. However, results from the simplified version are closer to equilibrium prediction, with more senders robustly classified as level-2.

Suggested Citation

  • Fu-Wen Hsieh & Joseph Tao-yi Wang, 2016. "Cheap Talk Games: Comparing Direct and Simplified Replications," Research in Experimental Economics, in: Experiments in Organizational Economics, volume 19, pages 19-38, Emerald Group Publishing Limited.
  • Handle: RePEc:eme:rexezz:s0193-230620160000019002
    DOI: 10.1108/S0193-230620160000019002
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    More about this item

    Keywords

    Sender-receiver game; strategic information transmission; lying; laboratory experiment; C72; C91; D83;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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