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Communication With Multiple Senders and Multiple Dimensions: An Experiment

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  • Alistair J. Wilson
  • Emanuel Vespa
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    Abstract

    We implement the Battaglini (2002) model of multi-sender-multi-dimension cheap talk in the laboratory, analyzing the effects of sender competition on information transmission. Our results indicate that competing senders provide enough information for close to full revelation, but receiver's ability to use this information crucially depends on senders' biases. Receivers are close to full extraction when biases identify an ex-ante trustworthy sender. When there is no ex-ante trustworthy source, full exploitation of messages sent requires the use the information inferred across dimensions. However, receivers seem to treat dimensions as separate choices, and are much closer to best-responding within each separate dimension.

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    Bibliographic Info

    Paper provided by University of Pittsburgh, Department of Economics in its series Working Papers with number 384.

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    Date of creation: Mar 2012
    Date of revision: Mar 2012
    Handle: RePEc:pit:wpaper:384

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    1. Archishman Chakraborty & Rick Harbaugh, 2010. "Persuasion by Cheap Talk," American Economic Review, American Economic Association, vol. 100(5), pages 2361-82, December.
      • Archishman Chakraborty & Rick Harbaugh, 2006. "Persuasion by Cheap Talk," Working Papers 2006-10, Indiana University, Kelley School of Business, Department of Business Economics and Public Policy, revised Oct 2009.
    2. Takahashi, Satoru & Ambrus, Attila, 2008. "Multi-Sender Cheap Talk with Restricted State Spaces," Scholarly Articles 3200263, Harvard University Department of Economics.
    3. Vincent P. Crawford & Miguel A. Costa-Gomes & Nagore Iriberri, 2010. "Strategic Thinking," Levine's Working Paper Archive 661465000000001148, David K. Levine.
    4. Ronny Razin & Gilat Levy, 2004. "Multidimentional Cheap Talk," 2004 Meeting Papers 184, Society for Economic Dynamics.
    5. Ignacio Esponda, 2008. "Behavioral Equilibrium in Economies with Adverse Selection," American Economic Review, American Economic Association, vol. 98(4), pages 1269-91, September.
    6. Kartik, Navin & Ottaviani, Marco & Squintani, Francesco, 2007. "Credulity, lies, and costly talk," Journal of Economic Theory, Elsevier, vol. 134(1), pages 93-116, May.
    7. Marco Ottaviani & Francesco Squintani, 2006. "Naive audience and communication bias," International Journal of Game Theory, Springer, vol. 35(1), pages 129-150, December.
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