Relational Communication
Theoretical Economics
2020-12-11 v3
Abstract
We study a communication game between an informed sender and an uninformed receiver with repeated interactions and voluntary transfers. Transfers motivate the receiver's decision-making and signal the sender's information. Although full separation can always be supported in equilibrium, partial or complete pooling is optimal if the receiver's decision-making is highly responsive to information. In this case, the receiver's decision-making is disciplined by pooling extreme states where she is most tempted to defect.
Cite
@article{arxiv.1901.05645,
title = {Relational Communication},
author = {Anton Kolotilin and Hongyi Li},
journal= {arXiv preprint arXiv:1901.05645},
year = {2020}
}
Comments
48 pages, 4 figures