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Truth-Telling and Trust in Sender-Receiver Games with Intervention

  • Mehmet Y. Gurdal
  • Ayca Ozdogan
  • Ismail Saglam

Recent experimental studies find excessive truth-telling in strategic information transmission games with conflictive preferences. In this paper, we show that this phenomenon is more pronounced in sender-receiver games where a truthful regulator randomly intervenes. We also establish that intervention significantly increases the excessive trust of receivers.

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File URL: http://ikt.web.etu.edu.tr/RePEc/pdf/1106.pdf
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Paper provided by TOBB University of Economics and Technology, Department of Economics in its series Working Papers with number 1106.

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Date of creation: Oct 2011
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Handle: RePEc:tob:wpaper:1106
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  1. Vincent P. Crawford, 2003. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," American Economic Review, American Economic Association, vol. 93(1), pages 133-149, March.
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  3. Costa-Gomes, Miguel & Crawford, Vincent P. & Broseta, Bruno, 1998. "Cognition and Behavior in Normal-Form Games: An Experimental Study," University of California at San Diego, Economics Working Paper Series qt1vn4h7x5, Department of Economics, UC San Diego.
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  7. Peeters Ronald & Vorsatz Marc & Walzl Markus, 2007. "Rewards in an Experimental Sender-Receiver Game," Research Memorandum 019, Maastricht University, Maastricht Research School of Economics of Technology and Organization (METEOR).
  8. Richard Mckelvey & Thomas Palfrey, 1998. "Quantal Response Equilibria for Extensive Form Games," Experimental Economics, Springer, vol. 1(1), pages 9-41, June.
  9. Nagel, Rosemarie, 1995. "Unraveling in Guessing Games: An Experimental Study," American Economic Review, American Economic Association, vol. 85(5), pages 1313-26, December.
  10. Santiago Sanchez-Pages, 2007. "Enjoy the Silence: An Experiment on Truth-Telling," ESE Discussion Papers 155, Edinburgh School of Economics, University of Edinburgh.
  11. Massimiliano Landi & Domenico Colucci, 2005. "Rational and boundedly rational behavior in sender-receiver games," Working Papers 14-2006, Singapore Management University, School of Economics, revised May 2006.
  12. John W. Dickhaut & Kevin A. McCabe & Arijit Mukherji, 1995. "An experimental study of strategicinformation transmission," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 6(3), pages 389-403.
  13. Fiorina, Morris P, 1987. "Comment: Alternative Rationales for Restrictive Procedures [Collective Decisionmaking and Standing Committees: An Informational Rationale for Restrictive Amendment Procedures]," Journal of Law, Economics and Organization, Oxford University Press, vol. 3(2), pages 337-43, Fall.
  14. Cai, Hongbin & Wang, Joseph Tao-Yi, 2006. "Overcommunication in strategic information transmission games," Games and Economic Behavior, Elsevier, vol. 56(1), pages 7-36, July.
  15. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
  16. Botond Kőszegi, 2006. "Emotional Agency," The Quarterly Journal of Economics, Oxford University Press, vol. 121(1), pages 121-155.
  17. Sanchez-Pages, Santiago & Vorsatz, Marc, 2007. "An experimental study of truth-telling in a sender-receiver game," Games and Economic Behavior, Elsevier, vol. 61(1), pages 86-112, October.
  18. Marco Ottaviani & Francesco Squintani, 2002. "Non-Fully Strategic Information Transmission," Wallis Working Papers WP29, University of Rochester - Wallis Institute of Political Economy.
  19. Urs Fischbacher, 2007. "z-Tree: Zurich toolbox for ready-made economic experiments," Experimental Economics, Springer, vol. 10(2), pages 171-178, June.
  20. McKelvey Richard D. & Palfrey Thomas R., 1995. "Quantal Response Equilibria for Normal Form Games," Games and Economic Behavior, Elsevier, vol. 10(1), pages 6-38, July.
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