Language, Meaning, and Games: A Model of Communication, Coordination, and Evolution: Comment
10 Pages Posted: 30 Aug 2013 Last revised: 13 Jan 2014
Date Written: January 12, 2014
Demichelis and Weibull (2008 AER) show that adding lexicographic lying costs to coordination games with cheap talk yields a sharp prediction: only the efficient outcome is evolutionarily stable. I show that this result is caused by the discontinuity of preferences rather than by small lying costs per se. Finally, I discuss why discontinuity may not be an appealing assumption in evolutionary models.
Keywords: Lexicographic preferences, evolutionary stability, cheap talk
JEL Classification: C73
Suggested Citation: Suggested Citation