Neutrally Stable Outcomes in Cheap-Talk Coordination Games
AbstractThis paper examines equilibrium and stability in symmetric two- player cheap-talk games. In particular, we characterize the set of neutrally stable outcomes infinite cheap-talk 2 x 2 coordination games. This set is finite and does not depend on risk-dominance relations. As the number of messages goes to infinity, this set expands to a countable limit set that has exactly one cluster point, the Pareto efficient Nash equilibrium payoff. In contrast, the corresponding limit set of strictly perfect outcomes is shown to be dense in the interval spanned by the Nash equilibrium payoffs of the game. It is also shown that the limit set of neutrally stable outcomes coincides with the set of neutrally stable outcomes when the message set is (countably) infinite.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Games and Economic Behavior.
Volume (Year): 32 (2000)
Issue (Month): 1 (July)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/622836
Other versions of this item:
- Abhijit Banerjee & J�rgen W. Weibull, . "Neutrally Stable Outcomes in Cheap Talk Coordination Games," ELSE working papers 012, ESRC Centre on Economics Learning and Social Evolution.
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Sobel, Joel, 1993. "Evolutionary stability and efficiency," Economics Letters, Elsevier, vol. 42(2-3), pages 301-312.
- E. Kohlberg & J.-F. Mertens, 1998.
"On the Strategic Stability of Equilibria,"
Levine's Working Paper Archive
445, David K. Levine.
- M. Kandori & R. Rob, 2010.
"Evolution of Equilibria in the Long Run: A General Theory and Applications,"
Levine's Working Paper Archive
502, David K. Levine.
- Kandori Michihiro & Rob Rafael, 1995. "Evolution of Equilibria in the Long Run: A General Theory and Applications," Journal of Economic Theory, Elsevier, vol. 65(2), pages 383-414, April.
- Warneryd, Karl, 1991.
"Evolutionary stability in unanimity games with cheap talk,"
Elsevier, vol. 36(4), pages 375-378, August.
- K. Warneryd, 2010. "Evolutionary Stability in Unanimity Games with Cheap Talk," Levine's Working Paper Archive 543, David K. Levine.
- Blume Andreas & Kim Yong-Gwan & Sobel Joel, 1993.
"Evolutionary Stability in Games of Communication,"
Games and Economic Behavior,
Elsevier, vol. 5(4), pages 547-575, October.
- A. Blume & Y. G. Kim & J. Sobel, 2010. "Evolutionary Stability in Games of Communication," Levine's Working Paper Archive 530, David K. Levine.
- Blume, A. & Kim, Y.G. & Sobel, J., 1993. "Evolutionary Stability in Games of Communication," Working Papers 93-07, University of Iowa, Department of Economics.
- Blume, A. & Kim, Y.G. & Sobel, J., 1992. "Evolutionary Stability in Games of Communication," Working Papers 92-17, University of Iowa, Department of Economics.
- Binmore, Ken & Samuelson, Larry, 1997. "Muddling Through: Noisy Equilibrium Selection," Journal of Economic Theory, Elsevier, vol. 74(2), pages 235-265, June.
- Kim, Y.G. & Sobel, J., 1993.
"An Evolutionary Approach to Pre-Play Communication,"
93-02, University of Iowa, Department of Economics.
- Kim, Yong-Gwan & Sobel, Joel, 1995. "An Evolutionary Approach to Pre-play Communication," Econometrica, Econometric Society, vol. 63(5), pages 1181-93, September.
- Warneryd Karl, 1993. "Cheap Talk, Coordination, and Evolutionary Stability," Games and Economic Behavior, Elsevier, vol. 5(4), pages 532-546, October.
- Bomze Immanuel M. & Weibull Jorgen W., 1995. "Does Neutral Stability Imply Lyapunov Stability?," Games and Economic Behavior, Elsevier, vol. 11(2), pages 173-192, November.
- A. J. Robson, 2010. "Efficiency in Evolutionary Games: Darwin, Nash and the Secret Handshake," Levine's Working Paper Archive 540, David K. Levine.
- Warneryd, Karl, 1992. "Communication, correlation, and symmetry in bargaining," Economics Letters, Elsevier, vol. 39(3), pages 295-300, July.
- Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
- Bhaskar, V., 1998. "Noisy Communication and the Evolution of Cooperation," Journal of Economic Theory, Elsevier, vol. 82(1), pages 110-131, September.
- Brian Skyrms, 2003. "Signals, Evolution and the Explanatory Power of Transient Information," Levine's Working Paper Archive 618897000000000799, David K. Levine.
- Stefano Demichelis & Jorgen W. Weibull, 2008.
"Language, Meaning, and Games: A Model of Communication, Coordination, and Evolution,"
American Economic Review,
American Economic Association, vol. 98(4), pages 1292-1311, September.
- Stefano Demichelis & Jörgen Weibull, 2009. "Language, meaning and games A model of communication, coordination and evolution," Working Papers hal-00354224, HAL.
- Stefano Demichelis & Jörgen W. Weibull, 2007. "Language, meaning and games: a model of communication, coordination and evolution," Carlo Alberto Notebooks 61, Collegio Carlo Alberto.
- Riccardo Calcagno & Stefano Lovo, 2010. "Preopening and Equilibrium Selection," Tinbergen Institute Discussion Papers 10-023/2, Tinbergen Institute.
- Ellingsen, Tore & Östling, Robert, 2006. "Organizational Structure as the Channeling of Boundedly Rational Pre-play Communication," Working Paper Series in Economics and Finance 634, Stockholm School of Economics.
- Weibull, Jörgen W., 1997. "What have we learned from Evolutionary Game Theory so far?," Working Paper Series 487, Research Institute of Industrial Economics, revised 26 Oct 1998.
- Robert J. Aumann & Sergiu Hart, 2003.
"Long Cheap Talk,"
Econometric Society, vol. 71(6), pages 1619-1660, November.
- Herold, Florian & Kuzmics, Christoph, 2009. "Evolutionary stability of discrimination under observability," Games and Economic Behavior, Elsevier, vol. 67(2), pages 542-551, November.
- Heller, Yuval, 2013. "Language, Meaning, and Games: Comment," MPRA Paper 49375, University Library of Munich, Germany.
- Demichelis, Stefano & Weibull, Jörgen, 2006. "Efficiency, communication and honesty," Working Paper Series in Economics and Finance 645, Stockholm School of Economics, revised 28 Nov 2006.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.