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Players have privacy concerns that may affect their choice of actions in strategic settings. We use a variant of signaling games to model this effect and study its relation to pooling behavior, misrepresentation of information, and inefficiency
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We study the robustness of cheap-talk equilibria to infinitesimal private information of the receiver in a model with a binary state-space and state-independent sender-preferences. We show that the sender-optimal equilibrium is robust if and only if this equilibrium either reveals no information...
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