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Robust Communication Between Parties with Nearly Independent Preferences

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  • Alistair Barton

Abstract

We study finite-state communication games in which the sender's preference is perturbed by random private idiosyncrasies. Persuasion is generically impossible within the class of statistically independent sender/receiver preferences -- contrary to prior research establishing persuasive equilibria when the sender's preference is precisely transparent. Nevertheless, robust persuasion may occur when the sender's preference is only slightly state-dependent/idiosyncratic. This requires approximating an `acyclic' equilibrium of the transparent preference game, generically implying that this equilibrium is also `connected' -- a generalization of partial-pooling equilibria. It is then necessary and sufficient that the sender's preference satisfy a monotonicity condition relative to the approximated equilibrium. If the sender's preference further satisfies a `semi-local' version of increasing differences, then this analysis extends to sender preferences that rank pure actions (but not mixed actions) according to a state-independent order. We apply these techniques to study (1) how ethical considerations, such as empathy for the receiver, may improve or impede comm

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  • Alistair Barton, 2024. "Robust Communication Between Parties with Nearly Independent Preferences," Papers 2403.13983, arXiv.org.
    • Handle: RePEc:arx:papers:2403.13983
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    References listed on IDEAS

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    1. Christoph Diehl & Christoph Kuzmics, 2021. "The (non-)robustness of influential cheap talk equilibria when the sender’s preferences are state independent," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(4), pages 911-925, December.
    2. MOULIN, Hervé & VIAL, Jean-Philippe, 1978. "Strategically zero-sum games: the class of games whose completely mixed equilibria connot be improved upon," LIDAM Reprints CORE 359, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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