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Strategic truth and deception

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Author Info

  • Carlos Oyarzun

    (Universidad de Alicante)

  • Paan Jindapon

    (University of Alabama)

Abstract

We study strategic communication in a sender-receiver gamein which the sender sends a message about the observed quality ofthe good to the receiver who may accept or reject the good without knowing the true quality or the sender's type. The game has infinitely many perfect Bayesian Nash equilibria. An equilibrium refinement identifies a unique class of equilibria that are outcome equivalent to the equilibrium in which the neutral sender always tells the truth and the biased sender adopts a feigning strategy to disguise himself by not fully exaggerating about the quality of the good.

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File URL: http://www.ivie.es/downloads/docs/wpasad/wpasad-2009-24.pdf
File Function: Fisrt version / Primera version, 2009
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Bibliographic Info

Paper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 2009-24.

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Length: 40 pages
Date of creation: Sep 2009
Date of revision:
Publication status: Published by Ivie
Handle: RePEc:ivi:wpasad:2009-24

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Related research

Keywords: Cheap Talk; Feigning Strategy; Strategic Information Transmission.;

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Cited by:
  1. Ramón Faulí-Oller, 2009. "Mergers of retailers with limited selling capacity," Working Papers. Serie AD 2009-26, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  2. Aurora Gómez Galvarriato & Cesar Guerrero-Luchtenberg, 2010. "Timing of protectionism," Working Papers. Serie AD 2010-03, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
  3. Garcia-Rosa, Alfonso & Kiss, Hubert Janos & Rodriguez-Lara, Ismael, 2010. "Do Social Networks Prevent Bank Runs?," UMUFAE Economics Working Papers 9723, DIGITUM. Universidad de Murcia.
  4. Sonia Oreffice & Climent Quintana, 2009. "Anthropometry and Socioeconomics in the Couple: Evidence from the PSID," Working Papers 2009-22, FEDEA.
  5. Empar Pons Blasco & Luisa Escriche Bertolín, 2009. "Who moves up the career ladder? A model of gender differences in job promotion," Working Papers. Serie AD 2009-23, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).

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