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Almost fully revealing cheap talk with imperfectly informed senders

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  • Ambrus, Attila
  • Lu, Shih En

Abstract

We show that in multi-sender communication games where senders imperfectly observe the state, if the state space is large enough, then there can exist equilibria arbitrarily close to full revelation of the state as the noise in the senders' observations gets small. In the case of replacement noise, where the senders observe the true state with high probability, we show this under mild assumptions, for both unbounded and large bounded state spaces. In the case of continuous noise, where senders observe a signal distributed continuously over a small interval around the true state, we establish this for unbounded state spaces. The results imply that when there are multiple experts from whom to solicit information, if the state space is large, then even when the state is observed imperfectly, there are communication equilibria that are strictly better for the principal than delegating the decision right to one of the experts.

Suggested Citation

  • Ambrus, Attila & Lu, Shih En, 2014. "Almost fully revealing cheap talk with imperfectly informed senders," Games and Economic Behavior, Elsevier, vol. 88(C), pages 174-189.
  • Handle: RePEc:eee:gamebe:v:88:y:2014:i:c:p:174-189
    DOI: 10.1016/j.geb.2014.09.001
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    Cited by:

    1. Schopohl, Simon, 2016. "Communication games with optional verification," Center for Mathematical Economics Working Papers 569, Center for Mathematical Economics, Bielefeld University.
    2. Meyer, Margaret & Moreno de Barreda, Inés & Nafziger, Julia, 2019. "Robustness of full revelation in multisender cheap talk," Theoretical Economics, Econometric Society, vol. 14(4).
    3. Simon Schopohl, 2017. "Communication Games with Optional Verification," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01490688, HAL.
    4. Jeahan Jung & Jeong-Yoo Kim, 2019. "Cheap Talk by Two Senders in the Presence of Network Externalities," Korean Economic Review, Korean Economic Association, vol. 35, pages 249-274.
    5. Migrow, Dimitri, 2018. "Designing Communication Hierarchies," CRETA Online Discussion Paper Series 44, Centre for Research in Economic Theory and its Applications CRETA.
    6. Lu, Shih En, 2017. "Coordination-free equilibria in cheap talk games," Journal of Economic Theory, Elsevier, vol. 168(C), pages 177-208.
    7. Wu, Jiemai, 2020. "Non-competing persuaders," European Economic Review, Elsevier, vol. 127(C).
    8. Junichiro Ishida & Takashi Shimizu, 2019. "Cheap talk when the receiver has uncertain information sources," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(2), pages 303-334, September.
    9. Miura, Shintaro, 2014. "Multidimensional cheap talk with sequential messages," Games and Economic Behavior, Elsevier, vol. 87(C), pages 419-441.
    10. Lai, Ernest K. & Lim, Wooyoung & Wang, Joseph Tao-yi, 2015. "An experimental analysis of multidimensional cheap talk," Games and Economic Behavior, Elsevier, vol. 91(C), pages 114-144.
    11. Simon Schopohl, 2017. "Communication Games with Optional Verification," Post-Print halshs-01490688, HAL.

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    More about this item

    Keywords

    Imperfect information; Cheap talk; Multi-senders; Communication;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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