Cheap Talk with Two Audiences: An Experiment
In this paper we experimentally test strategic information transmission between one informed and two uninformed agents in a cheap-talk game. We find evidence of the "disciplining" effect of public communication as compared to private; however, it is much weaker than predicted by the theory. Adding a second receiver naturally increases the complexity of strategic thinking when communication is public. Using the level-k model, we exploit the within subject design to show how individuals decrease their level-k in public communication. Surprisingly, we find that individuals become more sophisticated when they communicate privately with two receivers rather than one.
|Date of creation:||2013|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: (714) 628-2830
Fax: (714) 628-2881
Web page: http://www.chapman.edu/esi/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- David Gill & Victoria Prowse, 2013.
"Cognitive ability and learning to play equilibrium: A level-k analysis,"
Economics Series Working Papers
641, University of Oxford, Department of Economics.
- Gill, David & Prowse, Victoria, 2012. "Cognitive ability and learning to play equilibrium: A level-k analysis," MPRA Paper 38317, University Library of Munich, Germany, revised 23 Apr 2012.
- Farrell, Joseph & Gibbons, Robert, 1989.
"Cheap Talk with Two Audiences,"
American Economic Review,
American Economic Association, vol. 79(5), pages 1214-23, December.
- Ignacio Palacios-Huerta & Oscar Volij, .
Economic theory and game theory
020, Oscar Volij.
- Weber, Roberto A., 2003. "'Learning' with no feedback in a competitive guessing game," Games and Economic Behavior, Elsevier, vol. 44(1), pages 134-144, July.
- Stahl, Dale II & Wilson, Paul W., 1994. "Experimental evidence on players' models of other players," Journal of Economic Behavior & Organization, Elsevier, vol. 25(3), pages 309-327, December.
- Goltsman, Maria & Pavlov, Gregory, 2011.
"How to talk to multiple audiences,"
Games and Economic Behavior,
Elsevier, vol. 72(1), pages 100-122, May.
- Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
- Brañas-Garza, Pablo & García-Muñoz, Teresa & González, Roberto Hernán, 2012.
"Cognitive effort in the Beauty Contest Game,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 83(2), pages 254-260.
- Joseph Tao-yi Wang & Michael Spezio & Colin F. Camerer, 2010. "Pinocchio's Pupil: Using Eyetracking and Pupil Dilation to Understand Truth Telling and Deception in Sender-Receiver Games," American Economic Review, American Economic Association, vol. 100(3), pages 984-1007, June.
- Kawagoe, Toshiji & Takizawa, Hirokazu, 2009. "Equilibrium refinement vs. level-k analysis: An experimental study of cheap-talk games with private information," Games and Economic Behavior, Elsevier, vol. 66(1), pages 238-255, May.
- Vincent P. Crawford & Miguel A. Costa-Gomes & Nagore Iriberri, 2013. "Structural Models of Nonequilibrium Strategic Thinking: Theory, Evidence, and Applications," Journal of Economic Literature, American Economic Association, vol. 51(1), pages 5-62, March.
- Agranov, Marina & Potamites, Elizabeth & Schotter, Andrew & Tergiman, Chloe, 2012.
"Beliefs and endogenous cognitive levels: An experimental study,"
Games and Economic Behavior,
Elsevier, vol. 75(2), pages 449-463.
- Marina Agranov & Elizabeth Potamites & Andrew Schotter & Chloe Tergiman, 2012. "Beliefs and Endogenous Cognitive Levels An Experimental Study," Mathematica Policy Research Reports 887d4d4ffd0b4ea8b2dc04d4f, Mathematica Policy Research.
- Shane Frederick, 2005. "Cognitive Reflection and Decision Making," Journal of Economic Perspectives, American Economic Association, vol. 19(4), pages 25-42, Fall.
- repec:mpr:mprres:7497 is not listed on IDEAS
- Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-26, December.
- repec:oup:restud:v:75:y:2008:i:3:p:729-762 is not listed on IDEAS
When requesting a correction, please mention this item's handle: RePEc:chu:wpaper:13-32. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Megan Luetje)
If references are entirely missing, you can add them using this form.