2022/09/18 by Longjian Li, Li, Longjian
Decision Sciences · Economics, Econometrics and Finance · Social Sciences · #Economic Policies and Impacts #Experimental Behavioral Economics Studies #FOS: Economics and business #Game Theory and Applications #Theoretical Economics (econ.TH)
paper · pdf · doi:10.48550/arxiv.2209.08494
openalex publication_date 2022/09/18 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
This paper explores how ambiguity affects communication. We consider a cheap talk model in which the receiver evaluates the sender's message with respect to its worst-case expected payoff generated by multiplier preferences. We characterize the receiver's optimal strategy and show that the receiver's posterior action is consistent with his ex-ante action. We find that in some situations, ambiguity improves communication by shifting the receiver's optimal action upwards, and these situations are not rare.