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In economics, the standard approach to language is that talk is cheap. Here, instead, language is a social convention that affects utility. Unless language is used in its ordinary sense, it cannot help to coordinate actions because there is no way of decoding it. This points to a unique...
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We study communication in a static Cournot duopoly model under the assumption that the firms have unverifiable private … can communicate through a third party, communication can be informative even when it is not substantiated by any … commitment or costly actions. We exhibit a simple mechanism that ensures informative communication and interim Pareto dominates …
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recipients attach to communication opportunities (experiment 2). The first experiment shows that the effect of communication on …
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We study experimentally persuasion games in which a sender (e.g., a seller) with private information provides verifiable but potentially vague information (e.g., about the quality of a product) to a receiver (e.g., a buyer). Various theoretical solution concepts such as sequential equilibrium or...
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