Lying for Strategic Advantage : Rational and Boundedly Rational Misrepresentation of Intentions

@inproceedings{Crawford2002LyingFS,
  title={Lying for Strategic Advantage : Rational and Boundedly Rational Misrepresentation of Intentions},
  author={Vincent P. Crawford},
  year={2002}
}
Starting from Hendricks and McAfee's (2000) example of the Allies' decision to feint at Calais and attack Normandy on D-Day, this paper models misrepresentation of intentions to competitors or enemies. Allowing for the possibility of bounded strategic rationality and rational players' responses to it yields a sensible account of lying via costless, noiseless messages. In some leading cases, the model has generically unique pure-strategy sequential equilibria, in which rational players exploit… CONTINUE READING