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Communication and social preferences: an experimental analysis

Author

Listed:
  • Cabrales, Antonio
  • Feri, Francesco
  • Gottardi, Piero
  • Meléndez-Jiménez, Miguel A.

Abstract

This paper reports on experiments regarding cheap talk games where senders attempt deception when their interests are not in conflict with those of the receiver. The amount of miscommunication is higher than in previous experimental findings on cheap talk games in situations where senders’ and receivers’ interests are not in conflict. We obtain this even though, as in previous literature, some participants appear to feature a cost of lying. We argue our findings could be attributed to distributional preferences of senders who lie to avoid the receiver getting a higher payoff than herself.

Suggested Citation

  • Cabrales, Antonio & Feri, Francesco & Gottardi, Piero & Meléndez-Jiménez, Miguel A., 2021. "Communication and social preferences: an experimental analysis," CEPR Discussion Papers 15711, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:15711
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    More about this item

    Keywords

    Experiments; Cheap talk; Deception; Conflicts of interest; Social preferences;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • G14 - Financial Economics - - General Financial Markets - - - Information and Market Efficiency; Event Studies; Insider Trading

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