Abstract
Demichelis and Weibull (2008) 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.
| Original language | English |
|---|---|
| Pages (from-to) | 1857-1863 |
| Number of pages | 7 |
| Journal | American Economic Review |
| Volume | 104 |
| Issue number | 6 |
| DOIs | |
| State | Published - Jun 2014 |
| Externally published | Yes |
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