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Communication with forgetful liars

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  • Jehiel, Philippe

    (Department of Economics, PSE and UCL)

Abstract

I consider multi-round cheap talk communication environments in which, after a lie, the informed party has no memory of the content of the lie. I characterize the equilibria with forgetful liars in such settings assuming that a liar's expectation about his past lie coincides with the equilibrium distribution of lies aggregated over all possible realizations of the states. The approach is used to shed light on when the full truth is almost surely elicited, and when multiple lies can arise in equilibrium. Elaborations are proposed to shed light on why non-trivial communication protocols are used in criminal investigations.

Suggested Citation

  • Jehiel, Philippe, 2021. "Communication with forgetful liars," Theoretical Economics, Econometric Society, vol. 16(2), May.
    • Handle: RePEc:the:publsh:4154
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    References listed on IDEAS

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    More about this item

    Keywords

    Forgetful liars; lie detection; analogy-based expectations; cheap talk;
    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

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