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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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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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  12. Santiago Sanchez-Pages, 2007. "Enjoy the Silence: An Experiment on Truth-Telling," ESE Discussion Papers 155, Edinburgh School of Economics, University of Edinburgh.
  13. Crawford, Vincent P., 2001. "Lying for Strategic Advantage: Rational and Boundedly Rational Misrepresentation of Intentions," University of California at San Diego, Economics Working Paper Series qt6k65014s, Department of Economics, UC San Diego.
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  17. 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.
  18. Gilligan, Thomas W & Krehbiel, Keith, 1987. "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 287-335, Fall.
  19. Uri Gneezy, 2005. "Deception: The Role of Consequences," American Economic Review, American Economic Association, vol. 95(1), pages 384-394, March.
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