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Numeric vs. Natural Language Messages in Experimental Cheap Talk Games

Published online by Cambridge University Press:  31 July 2025

William Minozzi
Affiliation:
Department of Political, Science, The Ohio State University, Derby Hall, Columbus, OH, USA
Jonathan Woon*
Affiliation:
Department of Political Science, Department of Economics (secondary), and Pittsburgh Experimental Economics Laboratory, University of Pittsburgh, Wesley W. Posvar Hall, Pittsburgh, PA, USA
*
Corresponding author: Jonathan Woon; Email: woon@pitt.edu
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Abstract

We compare different forms of communication in the context of cheap talk sender-receiver games. While previous experiments find evidence supporting the comparative statics prediction that more preference divergence leads to less information transmission, there is also a consistent pattern of overcommunication and exaggeration, not predicted by theory, in which subjects convey more information than predicted in equilibrium. The latter of these findings may be due to the restricted nature of the message space in most experimental cheap talk games, encouraging subjects to engage in exaggeration artificially, rather than allowing it to emerge naturally. We tested this hypothesis with an incentivized lab experiment, and found evidence both phenomena persist with natural language (text-based) communication. Moreover, we probe the consequences of this expanded message space for outcomes, showing that senders benefit more than receivers, but that the most notable effect is that text messages improve efficiency.

Information

Type
Original Paper
Creative Commons
Creative Common License - CCCreative Common License - BY
This is an Open Access article, distributed under the terms of the Creative Commons Attribution licence (http://creativecommons.org/licenses/by/4.0), which permits unrestricted re-use, distribution and reproduction, provided the original article is properly cited.
Copyright
© The Author(s), 2025. Published by Cambridge University Press on behalf of the Economic Science Association.
Figure 0

Table 1. Session details

Figure 1

Fig. 1 The figure displays scatterplots of Target and Action in each experimental condition, along with regression lines. Against expectations, the relationship between the two is more informative with Text rather than Numeric messages

Figure 2

Table 2. Text increases distance from equilibrium predictions

Figure 3

Table 3. Evidence for the comparative statics prediction persists

Figure 4

Table 4. Payoffs depend on communication technology

Figure 5

Table 5. Varieties of text messages

Figure 6

Table 6. What gets mentioned?

Figure 7

Fig. 2 The figure displays summaries of estimated pointwise marginal effects with means depicted by points and interquartile ranges by segments. All estimates are based on support vector machine regressions

Figure 8

Table 7. Evidence for the comparative statics prediction persists

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Minozzi and Woon supplementary material

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