Commitment and Randomization in Communication
Theoretical Economics
2025-11-14 v3
Abstract
When does Sender, in a Sender-Receiver game, strictly value commitment? In a setting with finitely many actions and states, we establish that, generically, commitment has no value if and only if a partitional experiment is optimal. Moreover, if Sender's preferred cheap-talk equilibrium necessarily involves randomization, then Sender values commitment. Our results imply that if a school values commitment to a grading policy, then the school necessarily prefers to grade unfairly. We also ask: for what share of preference profiles does commitment have no value? For any state space, if there are actions, the share is at least . As the number of states grows large, the share converges precisely to .
Cite
@article{arxiv.2410.17503,
title = {Commitment and Randomization in Communication},
author = {Emir Kamenica and Xiao Lin},
journal= {arXiv preprint arXiv:2410.17503},
year = {2025}
}