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Pragmatic Languages with Universal Grammars

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  • Penelope Hernandez

    ()
    (ERI-CES)

  • Amparo Urbano Salvador

    ()
    (ERI-CES)

  • Jose E. Vila

    ()
    (ERI-CES)

Abstract

This paper shows the existence of an equilibrium pragmatic Language with a universal grammar as a coordination device under communication misunderstandings. Such a language plays a key role in achieving efficient outcomes in those Sender-Receiver games where there may exist noisy information transmission. The Language is pragmatic in the sense that the Receiver’ best response depends on the context, i.e, on the payoffs and on the initial probability distribution of the states of nature of the underlying game. The Language has a universal grammar because the coding rule does not depend on such specific parameters and can then be applied to any Sender-Receiver game with noisy communication.

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File URL: http://www.uv.es/erices/RePEc/WP/2010/0110.pdf
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Bibliographic Info

Paper provided by University of Valencia, ERI-CES in its series Discussion Papers in Economic Behaviour with number 0110.

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Date of creation: Apr 2010
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Handle: RePEc:dbe:wpaper:0110

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Related research

Keywords: grammar; pragmatic language; prototypes; separating equilibria;

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  1. Frédéric Koessler, 2000. "Common knowledge and consensus with noisy communication," Working Papers of BETA 2000-05, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  2. Rubinstein, Ariel, 1996. "Why Are Certain Properties of Binary Relations Relatively More Common in Natural Language?," Econometrica, Econometric Society, vol. 64(2), pages 343-55, March.
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  4. Oliver Board & Andreas Blume, 2008. "Intentional Vagueness," Working Papers 365, University of Pittsburgh, Department of Economics, revised Aug 2008.
  5. Board, Oliver J. & Blume, Andreas & Kawamura, Kohei, 2007. "Noisy talk," Theoretical Economics, Econometric Society, vol. 2(4), December.
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  7. Lipman Barton L. & Seppi Duane J., 1995. "Robust Inference in Communication Games with Partial Provability," Journal of Economic Theory, Elsevier, vol. 66(2), pages 370-405, August.
  8. Stefano Demichelis & Jorgen W. Weibull, 2008. "Language, Meaning, and Games: A Model of Communication, Coordination, and Evolution," American Economic Review, American Economic Association, vol. 98(4), pages 1292-1311, September.
  9. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-51, November.
  10. Jacques Crémer & Luis Garicano & Andrea Prat, 2007. "Language and the Theory of the Firm," The Quarterly Journal of Economics, MIT Press, vol. 122(1), pages 373-407, 02.
  11. Michel Balinski & Rida Laraki, 2007. "Election by Majority Judgement: Experimental Evidence," Working Papers hal-00243076, HAL.
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Cited by:
  1. Penélope Hernández & Bernhard von Stengel, 2012. "Nash Codes for Noisy Channels," Discussion Papers in Economic Behaviour 0912, University of Valencia, ERI-CES.

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