Truth-telling and trust in sender-receiver games with intervention: An experimental study
Review of Economic Design, cilt.18, sa.2, ss.83-103, 2014 (SSCI, Scopus)
- Yayın Türü: Makale / Tam Makale
- Cilt numarası: 18 Sayı: 2
- Basım Tarihi: 2014
- Doi Numarası: 10.1007/s10058-013-0155-9
- Dergi Adı: Review of Economic Design
- Derginin Tarandığı İndeksler: Social Sciences Citation Index (SSCI), Scopus
- Sayfa Sayıları: ss.83-103
- Anahtar Kelimeler: Intervention, Sender-receiver game, Strategic information transmission, Trust, Truth-telling
- Boğaziçi Üniversitesi Adresli: Evet
Özet
Recent experimental studies find excessive truth-telling in sender-receiver games. We show that this phenomenon is robust to the random intervention of a truthful regulator. In addition, intervention significantly increases the excessive trust of receivers while the overall percentage of truthful messages received does not change much with or without intervention. We offer a theoretical explanation for the behavior of senders and receivers, using a logit agent quantal response equilibrium (logit-AQRE) model incorporating a non-monetary lying cost for senders (like Peeters et al. in Scand J Econ 115(2):508-548, 2013). We show that our experimental findings are all consistent with the predictions of this model. Moreover, we find that the lying cost is significantly higher under intervention, implying that truthful intervention is beneficial for receivers and justified as a tool for policy makers acting on behalf of informationally inferior parties. © 2013 Springer-Verlag Berlin Heidelberg.