Papers
Topics
Authors
Recent
Search
2000 character limit reached

Robust Communication Between Parties with Nearly Independent Preferences

Published 20 Mar 2024 in econ.TH | (2403.13983v1)

Abstract: We study finite-state communication games in which the sender's preference is perturbed by random private idiosyncrasies. Persuasion is generically impossible within the class of statistically independent sender/receiver preferences -- contrary to prior research establishing persuasive equilibria when the sender's preference is precisely transparent. Nevertheless, robust persuasion may occur when the sender's preference is only slightly state-dependent/idiosyncratic. This requires approximating an acyclic' equilibrium of the transparent preference game, generically implying that this equilibrium is alsoconnected' -- a generalization of partial-pooling equilibria. It is then necessary and sufficient that the sender's preference satisfy a monotonicity condition relative to the approximated equilibrium. If the sender's preference further satisfies a `semi-local' version of increasing differences, then this analysis extends to sender preferences that rank pure actions (but not mixed actions) according to a state-independent order. We apply these techniques to study (1) how ethical considerations, such as empathy for the receiver, may improve or impede comm

Definition Search Book Streamline Icon: https://streamlinehq.com
References (19)
  1. David Austen-Smith and Jeffrey S. Banks “Cheap Talk and Burned Money” In Journal of Economic Theory 91.1, 2000, pp. 1–16 DOI: https://doi.org/10.1006/jeth.1999.2591
  2. “Verifiable disclosure” In Economic Theory 65.4, 2018, pp. 1011–1044 DOI: 10.1007/s00199-017-1048-x
  3. “Persuasion by Cheap Talk” In American Economic Review 100.5, 2010, pp. 2361–82 URL: https://www.aeaweb.org/articles?id=10.1257/aer.100.5.2361
  4. “Promises and Partnership” In Econometrica 74.6 [Wiley, Econometric Society], 2006, pp. 1579–1601 URL: http://www.jstor.org/stable/4123084
  5. In-Koo Cho and David M. Kreps “Signaling Games and Stable Equilibria” In The Quarterly Journal of Economics 102.2 Oxford University Press, 1987, pp. 179–221 URL: http://www.jstor.org/stable/1885060
  6. Vincent P. Crawford and Joel Sobel “Strategic Information Transmission” In Econometrica 50.6 [Wiley, Econometric Society], 1982, pp. 1431–1451 URL: http://www.jstor.org/stable/1913390
  7. “The (non-)robustness of influential cheap talk equilibria when the sender’s preferences are state independent” In International Journal of Game Theory 50.4, 2021, pp. 911–925 DOI: 10.1007/s00182-021-00774-0
  8. John Geanakoplos, David Pearce and Ennio Stacchetti “Psychological games and sequential rationality” In Games and Economic Behavior 1.1, 1989, pp. 60–79 DOI: https://doi.org/10.1016/0899-8256(89)90005-5
  9. Jerry R. Green and Nancy L. Stokey “A two-person game of information transmission” In Journal of Economic Theory 135.1, 2007, pp. 90–104 URL: https://ideas.repec.org/a/eee/jetheo/v135y2007i1p90-104.html
  10. John C. Harsanyi “Games with randomly disturbed payoffs: A new rationale for mixed-strategy equilibrium points” In International Journal of Game Theory 2.1, 1973, pp. 1–23 URL: https://doi.org/10.1007/BF01737554
  11. “Bayesian Persuasion” In American Economic Review 101.6, 2011, pp. 2590–2615 DOI: 10.1257/aer.101.6.2590
  12. Navin Kartik “Strategic Communication with Lying Costs” In The Review of Economic Studies 76.4, 2009, pp. 1359–1395 DOI: 10.1111/j.1467-937X.2009.00559.x
  13. “Disguising Lies—Image Concerns and Partial Lying in Cheating Games” In American Economic Journal: Microeconomics 11.4, 2019, pp. 79–110 DOI: 10.1257/mic.20170193
  14. “Cheap Talk With Transparent Motives” In Econometrica 88.4, 2020, pp. 1631–1660 URL: https://onlinelibrary.wiley.com/doi/abs/10.3982/ECTA15674
  15. “Mediated Information Design with Money Burning for Commitment Power” In SSRN, 2023 URL: https://ssrn.com/abstract=4504712
  16. Paul R. Milgrom “Good News and Bad News: Representation Theorems and Applications” In The Bell Journal of Economics 12.2 [RAND Corporation, Wiley], 1981, pp. 380–391 URL: http://www.jstor.org/stable/3003562
  17. “Strategically zero-sum games: The class of games whose completely mixed equilibria cannot be improved upon” In International Journal of Game Theory 7.3, 1978, pp. 201–221 DOI: 10.1007/BF01769190
  18. “Robust equilibria in cheap-talk games with fairly transparent motives”, 2023 arXiv:2309.04193 [econ.TH]
  19. Christoph Vanberg “Why Do People Keep Their Promises? An Experimental Test of Two Explanations” In Econometrica 76.6, 2008, pp. 1467–1480 DOI: https://doi.org/10.3982/ECTA7673

Summary

Paper to Video (Beta)

Whiteboard

No one has generated a whiteboard explanation for this paper yet.

Open Problems

We found no open problems mentioned in this paper.

Continue Learning

We haven't generated follow-up questions for this paper yet.

Authors (1)

Collections

Sign up for free to add this paper to one or more collections.

Tweets

Sign up for free to view the 2 tweets with 2 likes about this paper.