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Computationally restricted unmediated talk under incomplete information

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  • Amparo Urbano

    ()

  • Jose Vila

    ()

Abstract

We show the role of unmediated talk with computational complexity bounds as both an information transmission and a coordination device for the class of two-player games with incomplete information and rational parameters. We prove that any communication equilibrium payoff of such games can be reached as a Bayesian-Nash equilibrium payoff of the game extended by a two phase universal mechanism of interim computationally restricted pre-play communication. The communication protocols are designed with the help of modern cryptographic tools. A familiar context in which our results could be applied is bilateral trading with incomplete information. Copyright Springer-Verlag Berlin/Heidelberg 2004

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File URL: http://hdl.handle.net/10.1007/s00199-003-0378-z
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Bibliographic Info

Article provided by Springer in its journal Economic Theory.

Volume (Year): 23 (2004)
Issue (Month): 2 (January)
Pages: 283-320

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Handle: RePEc:spr:joecth:v:23:y:2004:i:2:p:283-320

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Related research

Keywords: Computational complexity; Unmediated communication; Correlated equilibrium; Bayesian-Nash equilibrium.;

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Cited by:
  1. Forges, Françoise & Vida, Péter, 2013. "Implementation of communication equilibria by correlated cheap talk: The two-player case," Theoretical Economics, Econometric Society, vol. 8(1), January.
  2. Vida, Péter & Azacis, Helmuts, 2012. "A Detail-Free Mediator," Cardiff Economics Working Papers E2012/10, Cardiff University, Cardiff Business School, Economics Section.
  3. Forges, Françoise, 2010. "Communication in Bayesian games: Overview of work on implementing mediators in game theory," Economics Papers from University Paris Dauphine 123456789/5279, Paris Dauphine University.
  4. Peter Vida, 2005. "A Detail-free Mediator and the 3 Player Case," IEHAS Discussion Papers 0511, Institute of Economics, Centre for Economic and Regional Studies, Hungarian Academy of Sciences.
  5. Indrajit Ray, 2002. "Multiple Equilibrium Problem and Non-Canonical Correlation Devices," Working Papers 2002-24, Brown University, Department of Economics.

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