ROBUST INFERENCE IN COMMUNICATION GAMES WITH PARTIAL PROVABILITY

Citation
Bl. Lipman et Dj. Seppi, ROBUST INFERENCE IN COMMUNICATION GAMES WITH PARTIAL PROVABILITY, Journal of economic theory, 66(2), 1995, pp. 370-405
Citations number
19
Categorie Soggetti
Economics
Journal title
ISSN journal
00220531
Volume
66
Issue
2
Year of publication
1995
Pages
370 - 405
Database
ISI
SICI code
0022-0531(1995)66:2<370:RIICGW>2.0.ZU;2-Q
Abstract
We study sequential message-sending games with an uninformed decision maker and multiple self-interested informed agents in which the abilit y to prove claims is limited. We give necessary and sufficient conditi ons for the existence of robust inference rules-that is, rules which l ead to full, correct inferences even if the decision maker has very li ttle information about speakers' preferences or strategies. Surprising ly little provability is needed when the decision maker only knows tha t the speakers have conflicting preferences over his actions. Conflict ing preferences guarantees that someone will have an incentive to ''co rrect'' any mistaken inference. (C) 1995 Academic Press, Inc.