2017
DOI: 10.1016/j.geb.2017.03.010
|View full text |Cite
|
Sign up to set email alerts
|

Modes of ambiguous communication

Abstract: We study cheap talk communication in a simple two actions-two states model featuring ambiguous priors. First, we find that in equilibrium, S often mixes between messages triggering different beliefs and behavior by R while R also occasionally randomizes. We interpret randomization by respectively S and R as embodying two different modes of ambiguous communication. Second, we find that for sufficiently high ambiguity, more than two messages are often necessary to implement the optimal decision rule of S. If onl… Show more

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
3
2

Citation Types

0
5
0

Year Published

2019
2019
2024
2024

Publication Types

Select...
6
2

Relationship

0
8

Authors

Journals

citations
Cited by 18 publications
(5 citation statements)
references
References 16 publications
0
5
0
Order By: Relevance
“…Tractable and widely accepted ambiguity theories were not available when the foundations of game theory were developed. Such ambiguity theories only became available later (surveyed by Marinacci, 2015), and several theoretical papers subsequently applied ambiguity theories to game theory (surveyed by Evren, 2019 p. 287 andKellner andle Quement, 2017 p. 272). Empirical studies began to appear only recently.…”
Section: Introductionmentioning
confidence: 99%
“…Tractable and widely accepted ambiguity theories were not available when the foundations of game theory were developed. Such ambiguity theories only became available later (surveyed by Marinacci, 2015), and several theoretical papers subsequently applied ambiguity theories to game theory (surveyed by Evren, 2019 p. 287 andKellner andle Quement, 2017 p. 272). Empirical studies began to appear only recently.…”
Section: Introductionmentioning
confidence: 99%
“…This paper joins a recently growing literature studying information transmission with ambiguity. This includes the work of Kellner and Le Quement (2017), who simplified communication via a two state and two action model. In a follow up paper, Kellner and Le Quement (2018) introduced endogenous ambiguity in cheap talk model by allowing the ambiguity aversion receiver to perform Ellsbergian randomization.…”
Section: Related Literaturementioning
confidence: 99%
“…Blume et al (2007) and Blume and Board (2014) show that the presence of vagueness may facilitate communication between Sender and Receiver. Kellner and Le Quement (2017) solve a simplified two actions/two states game where ambiguity is present in Receiver's priors but not as a strategic choice of Sender. They show that Sender would use more messages under this assumption than with the regular Bayesian prior.…”
Section: Related Literaturementioning
confidence: 99%