Abstract
Optimal communication to a group often entails a trade-off between precision of information conveyed and common understanding (or approximate common knowledge) of the information within the group. We argue that an understanding of this trade-off is central in many contexts, including central bank communication and the design of accounting standards, as well as understanding the design of language itself.
Original language | English (US) |
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Pages (from-to) | 594-602 |
Number of pages | 9 |
Journal | Journal of the European Economic Association |
Volume | 5 |
Issue number | 2-3 |
DOIs | |
State | Published - Apr 2007 |
All Science Journal Classification (ASJC) codes
- General Economics, Econometrics and Finance