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Failure of common knowledge of language in common-interest communication games

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  • Blume, Andreas

Abstract

This paper explores higher-order uncertainty about message availability in communication games with perfectly aligned preferences. It can be impossible to achieve ex post efficiency in equilibrium even when it is mutual knowledge that the size of the set of available messages would be sufficient to convey all payoff-relevant information. There are equilibria that achieve ex post efficiency whenever a rich language condition is satisfied: the set of available messages is large relative to the sender's assessment of the number of information sets of the sender the receiver considers possible. Weaker conditions suffice if one adopts an ex ante perspective.

Suggested Citation

  • Blume, Andreas, 2018. "Failure of common knowledge of language in common-interest communication games," Games and Economic Behavior, Elsevier, vol. 109(C), pages 132-155.
    • Handle: RePEc:eee:gamebe:v:109:y:2018:i:c:p:132-155
    DOI: 10.1016/j.geb.2017.12.014
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    Cited by:

    1. Jeanne Hagenbach & Frédéric Koessler, 2019. "Partial Language Competence," Working Papers hal-03393108, HAL.
    2. Blume, Andreas & Noussair, Charles N. & Ye, Bohan, 2024. "Fragile meaning - an experiment," Journal of Economic Theory, Elsevier, vol. 216(C).
    3. Hagenbach, Jeanne & Koessler, Frédéric, 2020. "Cheap talk with coarse understanding," Games and Economic Behavior, Elsevier, vol. 124(C), pages 105-121.
    4. Eliaz, Kfir & Frug, Alexander, 2023. "Toxic types and infectious communication breakdown," Games and Economic Behavior, Elsevier, vol. 142(C), pages 718-729.
    5. Suzuki, Toru, 2023. "Endogenous ambiguity and rational miscommunication," Journal of Economic Theory, Elsevier, vol. 211(C).
    6. Giovannoni, Francesco & Xiong, Siyang, 2019. "Communication under language barriers," Journal of Economic Theory, Elsevier, vol. 180(C), pages 274-303.
    7. repec:hal:wpspec:info:hdl:2441/3b2230a4419v9ojcpu27tsdrtb is not listed on IDEAS
    8. repec:hal:spmain:info:hdl:2441/3b2230a4419v9ojcpu27tsdrtb is not listed on IDEAS
    9. repec:spo:wpecon:info:hdl:2441/3b2230a4419v9ojcpu27tsdrtb is not listed on IDEAS
    10. repec:spo:wpmain:info:hdl:2441/3b2230a4419v9ojcpu27tsdrtb is not listed on IDEAS

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    More about this item

    Keywords

    Communication; Language; Information transmission; Meaning; Common knowledge;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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