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American Economic Journal: Microeconomics: Vol. 5 No. 2 (May 2013)

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Go Figure: The Strategy of Nonliteral Speech

Article Citation

Mialon, Hugo M., and Sue H. Mialon. 2013. "Go Figure: The Strategy of Nonliteral Speech." American Economic Journal: Microeconomics, 5(2): 186-212.

DOI: 10.1257/mic.5.2.186

Abstract

We develop a model of figurative or indirect speech, which may convey a meaning that differs from its literal meaning. The model yields analytical conditions for speech to be figurative in equilibrium and delivers a number of comparative statics results. For instance, it predicts that the likelihood of figurative speech is greater if the benefit to the listener of correctly understanding the speaker is greater. We then apply the model to analyze particular forms of indirect speech, including terseness, irony, and veiled bribery. Interestingly, the model provides a novel argument for the effectiveness of laws that strictly punish attempted bribery. (JEL D83, K42, Z13)

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Authors

Mialon, Hugo M. (Emory U)
Mialon, Sue H. (Emory U)

JEL Classifications

D83: Search; Learning; Information and Knowledge; Communication; Belief
K42: Illegal Behavior and the Enforcement of Law
Z13: Economic Sociology; Economic Anthropology; Social and Economic Stratification

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