van Damme, Eric; Potters, Jan; Serra Garcia, M. - Tilburg University, Center for Economic Research - 2010
When truth conflicts with efficiency, can verbal communication destroy efficiency? Or are lies or vagueness used to … prisoners’ dilemma. Without verbal communication, efficiency is achieved, with contributions for high or intermediate values … efficiency by exaggerating. When communication can be vague, the leader turns to vague messages when the value is intermediate …