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Efficient communication in the electronic mail game

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Author Info
De Jaegher, Kris

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Abstract

The literature on the electronic mail game shows that players' mutual expectations may lock them into requiring an inefficiently large number of confirmations and confirmations of confirmations from one another. This paper shows that this result hinges on the assumption that, with the exception of the first message, each player can only send a message when receiving an immediately preceding message. We show that, once this assumption is lifted, equilibria involving confirmations of confirmations no longer pass standard refinements of the Nash equilibrium, and are no longer evolutionary stable.

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Publisher Info
Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 63 (2008)
Issue (Month): 2 (July)
Pages: 468-497
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Handle: RePEc:eee:gamebe:v:63:y:2008:i:2:p:468-497

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Web page: http://www.elsevier.com/locate/inca/622836

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  1. Binmore, Ken & Samuelson, Larry, 2001. "Coordinated Action in the Electronic Mail Game," Games and Economic Behavior, Elsevier, vol. 35(1-2), pages 6-30, April. [Downloadable!] (restricted)
  2. repec:att:wimass:19949 is not listed on IDEAS
  3. Stephen Morris & Hyun Song Shin, . "Approximate Common Knowledge and Co-ordination: Recent Lessons from Game Theory," CARESS Working Papres 97-8, University of Pennsylvania Center for Analytic Research and Economics in the Social Sciences. [Downloadable!]
    Other versions:
  4. Georg Noldeke & Larry Samuelson, 1994. "Learning to Signal in Markets," Game Theory and Information 9410001, EconWPA, revised 21 Oct 1994. [Downloadable!]
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  5. repec:att:wimass:199518r is not listed on IDEAS
  6. Aumann, Robert & Brandenburger, Adam, 1995. "Epistemic Conditions for Nash Equilibrium," Econometrica, Econometric Society, vol. 63(5), pages 1161-80, September. [Downloadable!] (restricted)
  7. Karl H. Schlag & Dieter Balkenborg, 2001. "Evolutionarily stable sets," International Journal of Game Theory, Springer, vol. 29(4), pages 571-595. [Downloadable!] (restricted)
  8. Matsui, Akihiko, 1992. "Best response dynamics and socially stable strategies," Journal of Economic Theory, Elsevier, vol. 57(2), pages 343-362, August. [Downloadable!] (restricted)
  9. Monderer, Dov & Samet, Dov, 1989. "Approximating common knowledge with common beliefs," Games and Economic Behavior, Elsevier, vol. 1(2), pages 170-190, June. [Downloadable!] (restricted)
  10. Balkenborg, Dieter & Schlag, Karl H., 2007. "On the evolutionary selection of sets of Nash equilibria," Journal of Economic Theory, Elsevier, vol. 133(1), pages 295-315, March. [Downloadable!] (restricted)
  11. Kreps, David M & Wilson, Robert, 1982. "Sequential Equilibria," Econometrica, Econometric Society, vol. 50(4), pages 863-94, July. [Downloadable!] (restricted)
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  12. Noldeke, Georg & Samuelson, Larry, 1997. "A Dynamic Model of Equilibrium Selection in Signaling Markets," Journal of Economic Theory, Elsevier, vol. 73(1), pages 118-156, March. [Downloadable!] (restricted)
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