Modes of ambiguous communication

B-Tier
Journal: Games and Economic Behavior
Year: 2017
Volume: 104
Issue: C
Pages: 271-292

Authors (2)

Kellner, Christian (University of Southampton) Le Quement, Mark T. (not in RePEc)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We study cheap talk communication in a simple two actions-two states model featuring an ambiguous state distribution. Equilibrium behavior of both sender (S) and receiver (R) features mixing and we relate each agent's randomization to a specific mode of ambiguous communication. For sufficiently high ambiguity, implementing the S-optimal decision rule with only two messages is impossible if R has aligned preferences. This may in contrast be possible if R has misaligned preferences. Adding a little ambiguity may generate influential communication that is unambiguously advantageous to S.

Technical Details

RePEc Handle
repec:eee:gamebe:v:104:y:2017:i:c:p:271-292
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25