Advanced Search
MyIDEAS: Login

Meaningful talk

Contents:

Author Info

  • Jorge M. Streb
  • Gustavo Torrens

Abstract

We incorporate semiotics into economic theory, modeling communication with an encoding-decoding step where the sender transmits a message that the receiver can understand if and only if a common natural language is used. We add an inferential step where the receiver may either believe the literal meaning or disregard it in updating priors. This prevents conflating encrypted and ordinary messages, eliminating informative equilibria where language is used arbitrarily. Unlike cheap and costly talk models, informative equilibria exist only if the senders’ payoffs improve relative to the uninformative equilibrium. In informative equilibria, natural language works as an equilibrium selection mechanism.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.ucema.edu.ar/publicaciones/download/documentos/443-2014.pdf
File Function: Current version
Download Restriction: no

File URL: http://www.ucema.edu.ar/publicaciones/download/documentos/443.pdf
File Function: Previous version
Download Restriction: no

File URL: http://www.ucema.edu.ar/publicaciones/download/documentos/443-1.pdf
File Function: Previous version
Download Restriction: no

Bibliographic Info

Paper provided by Universidad del CEMA in its series CEMA Working Papers: Serie Documentos de Trabajo. with number 443.

as in new window
Length: 41 pages
Date of creation: Feb 2011
Date of revision: Mar 2014
Handle: RePEc:cem:doctra:443

Contact details of provider:
Postal: Av. Córdoba 374, (C1054AAP) Capital Federal
Phone: (5411) 6314-3000
Fax: (5411) 4314-1654
Email:
Web page: http://www.cema.edu.ar/publicaciones/doc_trabajo.html
More information through EDIRC

Related research

Keywords: cheap talk; signs; linguistic symbols; literal meaning; equilibrium meaning; credibility; relevance;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. McNollgast, 2007. "The Political Economy of Law," Handbook of Law and Economics, Elsevier.
  2. Harsanyi, John C, 1995. "Games with Incomplete Information," American Economic Review, American Economic Association, vol. 85(3), pages 291-303, June.
  3. Ostrom, Elinor, 2009. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," Nobel Prize in Economics documents 2009-4, Nobel Prize Committee.
  4. Callander, Steven & Wilkie, Simon, 2007. "Lies, damned lies, and political campaigns," Games and Economic Behavior, Elsevier, vol. 60(2), pages 262-286, August.
  5. Kartik, Navin & Ottaviani, Marco & Squintani, Francesco, 2007. "Credulity, lies, and costly talk," Journal of Economic Theory, Elsevier, vol. 134(1), pages 93-116, May.
  6. Coase, R H, 1976. "Adam Smith's Views of Man," Journal of Law and Economics, University of Chicago Press, vol. 19(3), pages 529-46, October.
  7. Robert J. Leonard, 1992. "Reading Cournot, Reading Nash / or / The Emergence and Stabilization of the Nash equilibrium," Cahiers de recherche du Département des sciences économiques, UQAM 9214, Université du Québec à Montréal, Département des sciences économiques.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Jorge M. Streb & Gustavo Torrens, 2012. "Honesty, lemons, and symbolic signals," CEMA Working Papers: Serie Documentos de Trabajo. 492, Universidad del CEMA.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:cem:doctra:443. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Valeria Dowding).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.