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Does communication increase the precision of beliefs?

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  • Bruttel, Lisa
  • Werner, Vasilisa

Abstract

This paper explores one channel in which communication facilitates cooperation — belief precision. A prisoner’s dilemma experiment shows that communication not only promotes optimism about the partner’s cooperation but also increases the precision of this belief, thereby reducing strategic uncertainty.

Suggested Citation

  • Bruttel, Lisa & Werner, Vasilisa, 2024. "Does communication increase the precision of beliefs?," Economics Letters, Elsevier, vol. 244(C).
    • Handle: RePEc:eee:ecolet:v:244:y:2024:i:c:s0165176524005160
    DOI: 10.1016/j.econlet.2024.112032
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    References listed on IDEAS

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    More about this item

    Keywords

    Prisoner’s dilemma; Communication; Beliefs; Strategic uncertainty; Experiment;
    All these keywords.

    JEL classification:

    • C92 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Group Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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