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The Algorithmic Advantage: How Reinforcement Learning Generates Rich Communication

Theoretical Economics 2026-02-13 v1

Abstract

We analyze strategic communication when advice is generated by a reinforcement-learning algorithm rather than by a fully rational sender. Building on the cheap-talk framework of Crawford and Sobel (1982), an advisor adapts its messages based on payoff feedback, while a decision maker best-responds. We provide a theoretical analysis of the long-run communication outcomes induced by such reward-driven adaptation. With aligned preferences, we establish that learning robustly leads to informative communication even from uninformative initial policies. With misaligned preferences, no stable outcome exists; instead, learning generates cycles that sustain highly informative communication and payoffs exceeding those of any static equilibrium.

Keywords

Cite

@article{arxiv.2602.12035,
  title  = {The Algorithmic Advantage: How Reinforcement Learning Generates Rich Communication},
  author = {Emilio Calvano and Clemens Possnig and Juha Tolvanen},
  journal= {arXiv preprint arXiv:2602.12035},
  year   = {2026}
}
R2 v1 2026-07-01T10:33:50.987Z