Receiver-Oriented Cheap Talk Design

Itai Arieli, Ivan Geffner and Moshe Tennenholtz

Papers from arXiv.org

Abstract: This paper considers the dynamics of cheap talk interactions between a sender and receiver, departing from conventional models by focusing on the receiver's perspective. We study two models, one with transparent motives and another one in which the receiver can \emph{filter} the information that is accessible by the sender. We give a geometric characterization of the best receiver equilibrium under transparent motives and prove that the receiver does not benefit from filtering information in this case. However, in general, we show that the receiver can strictly benefit from filtering and provide efficient algorithms for computing optimal equilibria. This innovative analysis aligns with user-based platforms where receivers (users) control information accessible to senders (sellers). Our findings provide insights into communication dynamics, leveling the sender's inherent advantage, and offering strategic interaction predictions.

Date: 2024-01
New Economics Papers: this item is included in nep-gth and nep-mic
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