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Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions

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  • Crawford, Vincent P.

Abstract

Starting from Hendricks and McAfee's (2000) example of the Allies' decision to feint at Calais and attack at Normandy on D-Day, this paper models misrepresentation of intentions to competitors or enemies. Allowing for the possibility of bounded strategic rationality and rational players' responses to it yields a sensible account of lying via costless, noiseless messages. In many cases the model has generically unique pure-strategy sequential equilibria, in which rational players exploit boundedly rational players, but are not themselves fooled. In others, the model has generically essentially unique mixed-strategy sequential equilibria, in which rational players' strategies protect all players from exploitation.

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Bibliographic Info

Paper provided by Department of Economics, UC San Diego in its series University of California at San Diego, Economics Working Paper Series with number qt6k65014s.

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Date of creation: 24 Sep 2001
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Handle: RePEc:cdl:ucsdec:qt6k65014s

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Keywords: lying; misrepresentation of intentions; preplay comunication; noncooperative games; conflict;

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  1. Blume, A. & DeJong, D.V. & Kim, Y-G. & Sprinkle, G., 1997. "Evolution of Communication With Partial Common Interest," Discussion Paper 1997-115, Tilburg University, Center for Economic Research.
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  25. repec:fth:stanho:e-89-7 is not listed on IDEAS
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