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Communication with Partially Verifiable Information: An Experiment

Author

Listed:
  • Valeria Burdea

    (University of Pittsburgh)

  • Maria Montero

    (University of Nottingham)

  • Martin Sefton

    (University of Nottingham)

Abstract

We use laboratory experiments to study communication games with partially veriï¬ able information. In these games, based on Glazer and Rubinstein (2004, 2006), an informed sender sends a two-dimensional message to a receiver, but only one dimension of the message can be veriï¬ ed. We compare a treatment where the receiver chooses which dimension to verify with one where the sender has this veriï¬ cation control. We ï¬ nd signiï¬ cant differences in outcomes across treatments. However, receivers’ payoffs do not differ signiï¬ cantly across treatments, suggesting they are not hurt by delegating veriï¬ cation control. We also show that in both treatments the receiver’s best reply to senders’ observed behavior is close to the optimal commitment strategy identiï¬ ed by Glazer and Rubinstein.

Suggested Citation

  • Valeria Burdea & Maria Montero & Martin Sefton, 2020. "Communication with Partially Verifiable Information: An Experiment," Discussion Papers 2020-11, The Centre for Decision Research and Experimental Economics, School of Economics, University of Nottingham.
    • Handle: RePEc:not:notcdx:2020-11
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    References listed on IDEAS

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    More about this item

    Keywords

    communication; partially verifiable messages; verification control; experiment;
    All these keywords.

    JEL classification:

    • C70 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - General
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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