Relational Communication

📝 Original Info

• Title: Relational Communication
• ArXiv ID: 1901.05645
• Date: 2020-12-11
• Authors: Anton Kolotilin and Hongyi Li

📝 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.

📄 Full Content

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