Cheap Talk on the Circle

Dragan Filipovich
Additional contact information
Dragan Filipovich: COLMEX

No 114, 2007 Meeting Papers from Society for Economic Dynamics

Abstract: In this paper we modify the `cheap-talk' model of Crawford and Sobel 1982 by taking the state space to correspond to a circle (instead of a line). It is shown that in such a setup the relationship between the `bias' (i.e., the parameter capturing the divergence of interests between sender and receiver), and the `informativeness' of equilibria, is reversed from what it is in the original Crawford and Sobel story: Now, a higher bias can be associated with more informative equilibria, rather than the other way around. We also attempt to characterize more generally the equilibria of this modified model.

Date: 2007
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:red:sed007:114

Access Statistics for this paper

More papers in 2007 Meeting Papers from Society for Economic Dynamics Contact information at EDIRC.
Bibliographic data for series maintained by Christian Zimmermann ().