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Miscommunication in an investment game with one-way messages

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  • Di Bartolomeo Giovanni
  • Papa Stefano

Abstract

This paper aims to study the effects of free-form messages (cheap talk) in an investment game as Berg et al. (1995). We guess that messages matter, but they may not affect the outcomes on average because different outcomes of communication can be systematically misunderstood generating different effects that offset each other. Considering a non-binary choice game, where misunderstandings are more likely to be observed, we test our intuition in two steps. First, we classify messages by their contents and then we verify their impact on participants’ behavior accordingly to their kind.

Suggested Citation

  • Di Bartolomeo Giovanni & Papa Stefano, 2016. "Miscommunication in an investment game with one-way messages," wp.comunite 00123, Department of Communication, University of Teramo.
    • Handle: RePEc:ter:wpaper:00123
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    More about this item

    Keywords

    Trust; reciprocity; promises; requests; empty talk;
    All these keywords.

    JEL classification:

    • D03 - Microeconomics - - General - - - Behavioral Microeconomics: Underlying Principles
    • C91 - Mathematical and Quantitative Methods - - Design of Experiments - - - Laboratory, Individual Behavior
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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