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Truth-Telling and Trust in Sender-Receiver Games with Intervention

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  • Mehmet Y. Gurdal
  • Ayca Ozdogan
  • Ismail Saglam

Abstract

Recent experimental studies find excessive truth-telling in strategic information transmission games with conflictive preferences. In this paper, we show that this phenomenon is more pronounced in sender-receiver games where a truthful regulator randomly intervenes. We also establish that intervention significantly increases the excessive trust of receivers.

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Bibliographic Info

Paper provided by TOBB University of Economics and Technology, Department of Economics in its series Working Papers with number 1106.

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Date of creation: Oct 2011
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Handle: RePEc:tob:wpaper:1106

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Cited by:
  1. Gurdal, Mehmet Y. & Ozdogan, Ayca & Saglam, Ismail, 2013. "Cheap talk with simultaneous versus sequential messages," MPRA Paper 45727, University Library of Munich, Germany.

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