Business Language for Agents with Asymmetric Perceptions

This paper addresses the relationship between individual perceptions and the uses of a business language. Perceptions are modeled explicitly, and are not common knowledge. A business language enables individuals with different perceptions to trade. I present a formal criterion for faithfulness of the business language among heterogeneous agents. Roughly, the language is heterogeneously faithful if different agents who observe the same real-world object can perceive it in a way that leads them to make the same report. Different business languages lead to different possible equilibria, and thus can be Pareto-ranked. In particular, heterogeneously faithful languages are compared with one where agents can fully disclose what they perceive