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Pragmatic Languages with Universal Grammars

Author

Listed:
  • Penelope Hernandez

    (ERI-CES)

  • Amparo Urbano Salvador

    (ERI-CES)

  • Jose E. Vila

    (ERI-CES)

Abstract

This paper shows the existence of an equilibrium pragmatic Language with a universal grammar as a coordination device under communication misunderstandings. Such a language plays a key role in achieving efficient outcomes in those Sender-Receiver games where there may exist noisy information transmission. The Language is pragmatic in the sense that the Receiver’ best response depends on the context, i.e, on the payoffs and on the initial probability distribution of the states of nature of the underlying game. The Language has a universal grammar because the coding rule does not depend on such specific parameters and can then be applied to any Sender-Receiver game with noisy communication.

Suggested Citation

  • Penelope Hernandez & Amparo Urbano Salvador & Jose E. Vila, 2010. "Pragmatic Languages with Universal Grammars," Discussion Papers in Economic Behaviour 0110, University of Valencia, ERI-CES.
    • Handle: RePEc:dbe:wpaper:0110
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    Cited by:

    1. Houser, Daniel & Yang, Yang, 2024. "Learning language: An experiment," Journal of Economic Behavior & Organization, Elsevier, vol. 217(C), pages 547-559.
    2. Penélope Hernández & Bernhard von Stengel, 2014. "Nash Codes for Noisy Channels," Operations Research, INFORMS, vol. 62(6), pages 1221-1235, December.

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    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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