We investigate strategic information transmission with communication error, or noise. Our main finding is that adding … noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost … every bias level by introducing a sufficiently small amount of noise. Furthermore, there exists a level of noise that makes …

We investigate strategic information transmission with communication error, or noise. Our main finding is that adding … noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost … every bias level by introducing a sufficiently small amount of noise. Furthermore, there exists a level of noise that makes …

We investigate strategic information transmission with communication error, or noise. Our main finding is that adding … noise can improve welfare. With quadratic preferences and a uniform type distribution, welfare can be raised for almost … every bias level by introducing a sufficiently small amount of noise. Furthermore, there exists a level of noise that makes …

actions. Surprisingly, the possibility of error can improve the prospects for communication. We show that for small noise … an optimal noise level for which these equilibria achieve the efficiency bound for general communication devices …. Furthermore, for a range of biases introducing any amount of noise can be beneficial. …