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Pragmatic languages with universal grammars

  • Hernández, Penélope
  • Urbano, Amparo
  • Vila, José E.

This paper constructs the equilibrium for a specific code that can be seen as a “universal grammar” in a class of common interest Sender–Receiver games where players communicate through a noisy channel. We propose a Senderʼs signaling strategy which does not depend on either the game payoffs or the initial probability distribution. The Receiverʼs strategy partitions the set of possible sequences into subsets, with a single action assignment to each of them. The Senderʼs signaling strategy is a Nash equilibrium, i.e. when the Receiver responds best to the Senderʼs strategy, the Sender has no incentive to deviate. An example shows that a tie-breaking decoding is crucial for the block-coding strategy to be an equilibrium. Efficiency is analyzed by comparing how close ex-ante expected payoffs are to those of noiseless communication. Moreover, we study how long communication should be to achieve a given payoff-approximation.

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

Volume (Year): 76 (2012)
Issue (Month): 2 ()
Pages: 738-752

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Handle: RePEc:eee:gamebe:v:76:y:2012:i:2:p:738-752
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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  10. Yaron Azrieli & Ehud Lehrer, 2004. "Categorization generated by prototypes -- an axiomatic approach," Game Theory and Information 0405003, EconWPA.
  11. Koessler, Frederic, 2004. "Strategic knowledge sharing in Bayesian games," Games and Economic Behavior, Elsevier, vol. 48(2), pages 292-320, August.
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