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Pragmatic Ambiguity and Rational Miscommunication

Author

Listed:
  • Toru Suzuki

    (University of Technology Sydney)

Abstract

This paper provides a model of miscommunication in a common-interest setting. The speaker describes the state with a preexisting language to the decision-maker, whereas using a longer description is more costly. It is shown that, given any non-zero communication cost, any reasonably efficient equilibrium exhibits miscommunication caused by ambiguous descriptions whenever agents communicate across various occasions and their perceptions of occasions are imperfect but sufficiently accurate. Equilibrium miscommunication disappears when agents’ perceptions of occasions are too noisy, suggesting more accurate perceptions do not always reduce miscommunication. The model also provides insight into the miscommunication that triggered a well-known aircraft crash.

Suggested Citation

  • Toru Suzuki, 2021. "Pragmatic Ambiguity and Rational Miscommunication," Working Paper Series 2021/04, Economics Discipline Group, UTS Business School, University of Technology, Sydney.
    • Handle: RePEc:uts:ecowps:2021/04
    as

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    File URL: https://www.uts.edu.au/sites/default/files/article/downloads/Working%20paper_SUZUKI%20Toru.pdf
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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Miscommunication; common-interest communication; pragmatic ambiguity; economics and language;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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