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Evolution of Communication with Partial Common Interest

  • Blume, Andreas
  • DeJong, Douglas V.
  • Kim, Yong-Gwan
  • Sprinkle, Geoffrey B.

This paper uses experiments to investigate the evolution of communication. We consider simple games of information transmission in which the interests of senders and receivers are imperfectly aligned. We show that under four canonical incentive conditions the no-communication hypothesis can be rejected with and without literal meanings. Communicative outcomes are less likely to evolve and, if they do, evolve more slowly without a commonly understood language. When we see communicative outcomes, they tend to satisfy a partial common interest condition. Equilibria are useful guideposts for analyzing outcomes but are not always obtained; e.g., with literal meanings we observe stable sucker behavior and adherence to focal meanings and, without literal meanings, combinations of actions that could not coexist under

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Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 37 (2001)
Issue (Month): 1 (October)
Pages: 79-120

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Handle: RePEc:eee:gamebe:v:37:y:2001:i:1:p:79-120
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  1. Nahum D. Melumad & Toshiyuki Shibano, 1991. "Communication in Settings with No. Transfers," RAND Journal of Economics, The RAND Corporation, vol. 22(2), pages 173-198, Summer.
  2. Joyce E. Berg & Lane A. Daley & John W. Dickhaut & John R. O'Brien, 1986. "Controlling Preferences for Lotteries on Units of Experimental Exchange," The Quarterly Journal of Economics, Oxford University Press, vol. 101(2), pages 281-306.
  3. A. Blume & Y. G. Kim & J. Sobel, 2010. "Evolutionary Stability in Games of Communication," Levine's Working Paper Archive 530, David K. Levine.
  4. Andreas Blume, 1996. "Information Transmission and Preference Similarity," Game Theory and Information 9605004, EconWPA.
  5. Steven A. Matthews & M. Okuno-Fujiwara & Andrew Postlewaite, 1990. "Refining Cheap-Talk Equilibria," Discussion Papers 892R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Kohlberg, Elon & Mertens, Jean-Francois, 1986. "On the Strategic Stability of Equilibria," Econometrica, Econometric Society, vol. 54(5), pages 1003-1037, September.
  7. J. Farrell, 2010. "Meaning and Credibility in Cheap Talk Games," Levine's Working Paper Archive 533, David K. Levine.
  8. Blume, Andreas, 1996. "Neighborhood Stability in Sender-Receiver Games," Games and Economic Behavior, Elsevier, vol. 13(1), pages 2-25, March.
  9. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
  10. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-483, December.
  11. Russell Cooper & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1989. "Communication in the Battle of the Sexes Game: Some Experimental Results," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 568-587, Winter.
  12. In-Koo Cho & David M. Kreps, 1997. "Signaling Games and Stable Equilibria," Levine's Working Paper Archive 896, David K. Levine.
  13. Forsythe, Robert & Lundholm, Russell & Rietz, Thomas, 1999. "Cheap Talk, Fraud, and Adverse Selection in Financial Markets: Some Experimental Evidence," Review of Financial Studies, Society for Financial Studies, vol. 12(3), pages 481-518.
  14. Rabin, Matthew & Sobel, Joel, 1996. "Deviations, Dynamics, and Equilibrium Refinements," Journal of Economic Theory, Elsevier, vol. 68(1), pages 1-25, January.
  15. Andreoni, J. & Miller, J.H., 1996. "Giving According to GARP: An Experimental Study of Rationality and Altruism," Working papers 9601, Wisconsin Madison - Social Systems.
  16. Paul R. Milgrom, 1979. "Good Nevs and Bad News: Representation Theorems and Applications," Discussion Papers 407R, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  17. Stein, Jeremy C, 1989. "Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements," American Economic Review, American Economic Association, vol. 79(1), pages 32-42, March.
  18. COOPER, R. & DEJONG, D.V. & FORSYTHE, R. & Tom Ross, 1989. "Communication In The Battle Of The Sexes Game," Carleton Industrial Organization Research Unit (CIORU) 89-03, Carleton University, Department of Economics.
  19. Rabin, Matthew, 1990. "Communication between rational agents," Journal of Economic Theory, Elsevier, vol. 51(1), pages 144-170, June.
  20. Andreoni, J. & Brown, P.M. & Vesterlund, L., 1997. "Fairness, Selfishness and Selfish Fairness: Experiments on Games with Unequal Equilibrium," Working papers 9726, Wisconsin Madison - Social Systems.
  21. Blume, Andreas, et al, 1998. "Experimental Evidence on the Evolution of Meaning of Messages in Sender-Receiver Games," American Economic Review, American Economic Association, vol. 88(5), pages 1323-1340, December.
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