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Pragmatic Languages with Universal Grammars

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Listed:
  • 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.

Suggested Citation

  • Penelope Hernandez & Amparo Urbano Salvador & Jose E. Vila, 2010. "Pragmatic Languages with Universal Grammars," Discussion Papers in Economic Behaviour 0110, University of Valencia, ERI-CES.
    • Handle: RePEc:dbe:wpaper:0110
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    References listed on IDEAS

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    Cited by:

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    More about this item

    Keywords

    grammar; pragmatic language; prototypes; separating equilibria;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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