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Bayesian Doublespeak

Author

Listed:
  • Ing-Haw Cheng

    (University of Toronto)

  • Alice Hsiaw

    (Brandeis University)

Abstract

We show that misinformation distorts long-run beliefs in “doublespeak’’ equilibria of a cheap talk game where receivers are uncertain of a state and the sender’s type. A sender type who prefers receivers take wrong actions sends messages that plausibly come from a good type under a different state. Even after observing infinite messages, receivers disagree about the state and take different ex-post actions. A policymaker who believes that doublespeak would mislead receivers may restrict the sender to finite messages. An option for receivers to fact-check messages does not limit doublespeak, but sender concerns about reputation can.

Suggested Citation

  • Ing-Haw Cheng & Alice Hsiaw, 2023. "Bayesian Doublespeak," Working Papers 135, Brandeis University, Department of Economics and International Business School.
    • Handle: RePEc:brd:wpaper:135
    as

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    File URL: http://www.brandeis.edu/economics/nePEc/brd/doc/brandeis_wp135.pdf
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    References listed on IDEAS

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