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Perturbed communication games with honest senders and naive receivers

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  • Chen, Ying

Abstract

This paper studies communication games in which the sender is possibly honest (tells the truth) and the receiver is possibly naive (follows messages as if truthful). The characterization of message-monotone equilibria in the perturbed games explain several important aspects of strategic communication including sender exaggeration, receiver skepticism and message clustering. Surprisingly, the strategic receiver may respond to more aggressive claims with more moderate actions. In the limit as the probabilities of the non-strategic players approach zero, (i) the limit equilibrium corresponds to a most-informative equilibrium of the limit (Crawford-Sobel) game; (ii) only the top messages are sent.

Suggested Citation

  • Chen, Ying, 2011. "Perturbed communication games with honest senders and naive receivers," Journal of Economic Theory, Elsevier, vol. 146(2), pages 401-424, March.
  • Handle: RePEc:eee:jetheo:v:146:y:2011:i:2:p:401-424
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    Cited by:

    1. Irene Valsecchi, 2013. "The expert problem: a survey," Economics of Governance, Springer, vol. 14(4), pages 303-331, November.
    2. Blume, Andreas & Lai, Ernest K. & Lim, Wooyoung, 2014. "Eliciting Private Information with Noise: The Case of Randomized Response," Center for Mathematical Economics Working Papers 490, Center for Mathematical Economics, Bielefeld University.
    3. Dziuda, Wioletta, 2011. "Strategic argumentation," Journal of Economic Theory, Elsevier, vol. 146(4), pages 1362-1397, July.
    4. Ertac, Seda & Koçkesen, Levent & Ozdemir, Duygu, 2016. "The role of verifiability and privacy in the strategic provision of performance feedback: Theory and experimental evidence," Games and Economic Behavior, Elsevier, vol. 100(C), pages 24-45.
    5. Daron Acemoglu & Alexander Wolitzky, 2012. "Cycles of Distrust: An Economic Model," Levine's Working Paper Archive 786969000000000502, David K. Levine.
    6. Ayça Özdoðan, 2016. "A Survey of Strategic Communication and Persuasion," Bogazici Journal, Review of Social, Economic and Administrative Studies, Bogazici University, Department of Economics, vol. 30(1), pages 1-21.
    7. Irene Valsecchi, 2013. "Non-uniqueness of equilibrium action profiles with equal size in one-shot cheap-talk games," Theory and Decision, Springer, vol. 74(1), pages 31-53, January.
    8. Newton Jonathan, 2014. "Cheap Talk and Editorial Control," The B.E. Journal of Theoretical Economics, De Gruyter, vol. 14(1), pages 1-25, February.
    9. Jeanne Hagenbach & Frédéric Koessler, 2017. "Simple versus rich language in disclosure games," Review of Economic Design, Springer;Society for Economic Design, vol. 21(3), pages 163-175, September.
    10. Sadowski, Philipp, 2016. "Overeagerness," Journal of Economic Behavior & Organization, Elsevier, vol. 131(PA), pages 114-125.
    11. Patrick Hummel & John Morgan & Phillip C. Stocken, 2013. "A model of flops," RAND Journal of Economics, RAND Corporation, vol. 44(4), pages 585-609, December.
    12. Armenak Antinyan & Luca Corazzini & Elena D'Agostino & Filippo Pavesi, 2017. "Watch your Words: an Experimental Study on Communication and the Opportunity Cost of Delegation," Working Papers 18/2017, University of Verona, Department of Economics.
    13. Little, Andrew T., 2017. "Propaganda and credulity," Games and Economic Behavior, Elsevier, vol. 102(C), pages 224-232.
    14. Kim, Kyungmin & Pogach, Jonathan, 2014. "Honesty vs. advocacy," Journal of Economic Behavior & Organization, Elsevier, vol. 105(C), pages 51-74.

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