Endogenous ambiguity in cheap talk

A-Tier
Journal: Journal of Economic Theory
Year: 2018
Volume: 173
Issue: C
Pages: 1-17

Authors (2)

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

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

This paper proposes a model of ambiguous language. We consider a simple cheap talk game in which a sender who faces an ambiguity averse receiver is able to perform ambiguous randomization, i.e. to randomize according to unknown probabilities. We show that for any standard influential communication equilibrium there exists an equilibrium featuring an ambiguous communication strategy which Pareto-dominates it in terms of consistent planning ex ante utilities. Ambiguity, by triggering worst-case decision-making by the receiver, shifts the latter's response to information towards the sender's ideal action, thus encouraging more information transmission.

Technical Details

RePEc Handle
repec:eee:jetheo:v:173:y:2018:i:c:p:1-17
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25