This paper analyzes communication with a language that is vague in the sense that identical messages do not always result in identical interpretations. It is shown that strategic agents frequently add to this vagueness by being intentionally vague, i.e. they deliberately choose less precise messages than they have to among the ones available to them in equilibrium. Having to communicate with a vague language can be welfare enhancing because it mitigates conflict. In equilibria that satisfy a dynamic stability condition intentional vagueness increases with the degree of conflict between sender and receiver.
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Paper provided by University of Pittsburgh, Department of Economics in its series Working Papers with number
365.
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Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
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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.:
Andreas Blume & Oliver Board & Kohei Kawamura, 2007.
"Noisy Talk,"
ESE Discussion Papers
167, Edinburgh School of Economics, University of Edinburgh.
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Other versions:
Board, Oliver J. & Blume, Andreas & Kawamura, Kohei, 2007.
"Noisy talk,"
Theoretical Economics,
Society for Economic Theory, vol. 2(4), pages 395-440, December.
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