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Extensions and Vagueness of Language under Two-Dimensional State Uncertainty

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  • Saori Chiba

    () (Dept. of Management, Università Ca' Foscari Venice)

Abstract

We examine languages under two-dimensional uncertainty about the stateÑ the type and support of the state-distribution as well as the state is ex-ante uncertain. We consider communication between an uninformed decision maker and an imperfectly informed speaker. We show that this two-dimensional uncertainty leads the extension of language to be vague in the sense that the speaker with different knowledge of the state-distribution uses the same symbol for the different extent of information on the state. We also explore languages when the players contract over the number of symbols due to bounded rationality and when they possesses different prior beliefs.

Suggested Citation

  • Saori Chiba, 2014. "Extensions and Vagueness of Language under Two-Dimensional State Uncertainty," Working Papers 20, Department of Management, Università Ca' Foscari Venezia.
  • Handle: RePEc:vnm:wpdman:91
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    File URL: http://virgo.unive.it/wpideas/storage/2014wp20.pdf
    File Function: First version, 2014
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    References listed on IDEAS

    as
    1. Yeon-Koo Che & Navin Kartik, 2009. "Opinions as Incentives," Journal of Political Economy, University of Chicago Press, vol. 117(5), pages 815-860, October.
    2. Bernard Caillaud & Jean Tirole, 2007. "Consensus Building: How to Persuade a Group," American Economic Review, American Economic Association, vol. 97(5), pages 1877-1900, December.
    3. Jacques Crémer & Luis Garicano & Andrea Prat, 2007. "Language and the Theory of the Firm," The Quarterly Journal of Economics, Oxford University Press, vol. 122(1), pages 373-407.
    4. K. de Jaegher & R. van Rooij, 2009. "Strategic Vagueness and Appropriate Contexts," Working Papers 09-31, Utrecht School of Economics.
    5. Saori Chiba & Kaiwen Leong & Kaiwen Leong, 2013. "Cheap Talk with Outside Options," Working Papers 16, Department of Management, Università Ca' Foscari Venezia.
    6. Bernard Caillaud & Jean Tirole, 2007. "Consensus Building: How to Persuade a Group," American Economic Review, American Economic Association, vol. 97(5), pages 1877-1900, December.
    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Saori CHIBA, "undated". "Vagueness of Language: Indeterminacy under Two-Dimensional State Uncertainty," Discussion papers e-18-003, Graduate School of Economics , Kyoto University.

    More about this item

    Keywords

    Bounded Rationality; Extensions of Languages; Uncertainty; Vagueness.;

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • M14 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Corporate Culture; Diversity; Social Responsibility

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