Cheap Talk with Coarse Understanding
We use the analogy-based expectation equilibrium (Jehiel 2005) to study cheap talk from a sender who does not perfectly understand all the messages available to him. The sender is endowed with a privately known language competence corresponding to the set of messages he understands. For the messages he does not understand, the sender has correct but only coarse expectations about the equilibrium response of the receiver. An analogy-based expectation equilibrium is always a Bayesian solution and usually differs from an equilibrium with language barriers (Blume and Board 2013). Partial language competence rationalizes information transmission and lies in pure persuasion problems, and can facilitate information transmission from a moderately biased sender.

Please sign up for meetings here: docs.google.com/spreadsheets/d/1Tf4YtDeDdmv3Dv379EyhWTL6lszs2Dy6yiff7yJeJAY/edit#gid=0
Date: 31 January 2020, 14:15 (Friday, 2nd week, Hilary 2020)
Venue: Manor Road Building, Manor Road OX1 3UQ
Venue Details: Seminar Room A
Speaker: Jeanne Hagenbach (Sciences Po)
Organising department: Department of Economics
Part of: Nuffield Economic Theory Seminar
Booking required?: Not required
Audience: Members of the University only
Editor: Melis Clark