2017•International Journal of Economic TheoryRequires access

Changing partners in a cheap talk game: Experimental evidence

Olivier Bonroy, Alexis Garapin, Daniel Vicente Antón Llerena

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Abstract

Abstract This paper considers the effects that the opportunity to change partners has on communication. Our experiment concerns a standard cheap talk game in which a player observes a private forecast before disclosing it (truthfully or untruthfully) in a message that he sends to his partner. Two treatments are applied: in one, each team remains unchanged until the experiment ends; and in the other, players can change their partner. We find that the opportunity to change partners positively affects communication in the relationship. Interestingly, this effect is explained by higher levels of trust in the messages and not by more truthful disclosure of private information.

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What this paper is about

Abstract This paper considers the effects that the opportunity to change partners has on communication. Our experiment concerns a standard cheap talk game in which a player observes a private forecast before disclosing it (truthfully or untruthfully) in a message that he sends to his partner. Two treatments are applied: in one, each team remains unchanged until the experiment ends; and in the other, players can change their partner. We find that the opportunity to change partners positively affects communication in the relationship. Interestingly, this effect is explained by higher levels of trust in the messages and not by more truthful disclosure of private information.

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Available abstract

Abstract This paper considers the effects that the opportunity to change partners has on communication. Our experiment concerns a standard cheap talk game in which a player observes a private forecast before disclosing it (truthfully or untruthfully) in a message that he sends to his partner. Two treatments are applied: in one, each team remains unchanged until the experiment ends; and in the other, players can change their partner. We find that the opportunity to change partners positively affects communication in the relationship. Interestingly, this effect is explained by higher levels of trust in the messages and not by more truthful disclosure of private information.

Key concepts: Cheap talk, Private information retrieval, Microeconomics, Economics, Signaling game, Business, Computer science, Computer security

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