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The (non-)robustness of influential cheap talk equilibria

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  • Christoph Diehl

    ()
    (Center for Mathematical Economics, Bielefeld University)

  • Christoph Kuzmics

    ()
    (Center for Mathematical Economics, Bielefeld University)

Abstract

Chakraborty and Harbaugh (2010) prove the existence of influential cheap talk equilibria in one sender one receiver games when the state is multidimensional and the preferences of the sender are state-independent. We show that only the babbling equilibrium survives the introduction of any small degree of uncertainty about the sender’s preferences in the spirit of Harsanyi (1973). None of the influential equilibria are robust to this kind of uncertainty.

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File URL: http://www.imw.uni-bielefeld.de/n/upload/paper/0266e33d3f546cb5436a10798e657d97.pdf
File Function: First version, 2013
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Bibliographic Info

Paper provided by Bielefeld University, Center for Mathematical Economics in its series Working Papers with number 489.

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Length: 15 pages
Date of creation: Oct 2013
Date of revision:
Handle: RePEc:bie:wpaper:489

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  1. Dirk Bergemann & Stephen Morris, 2005. "Robust Mechanism Design," Econometrica, Econometric Society, Econometric Society, vol. 73(6), pages 1771-1813, November.
  2. Archishman Chakraborty & Rick Harbaugh, 2010. "Persuasion by Cheap Talk," American Economic Review, American Economic Association, vol. 100(5), pages 2361-82, December.
  3. Morgan, J. & Stocken, P., 1998. "An Analysis of Stock Recommendations," Papers, Princeton, Woodrow Wilson School - Public and International Affairs 204, Princeton, Woodrow Wilson School - Public and International Affairs.
  4. Goltsman, Maria & Hörner, Johannes & Pavlov, Gregory & Squintani, Francesco, 2009. "Mediation, arbitration and negotiation," Journal of Economic Theory, Elsevier, vol. 144(4), pages 1397-1420, July.
  5. Marco Battaglini, 2000. "Multiple Referrals and Multidimensional Cheap Talk," Econometric Society World Congress 2000 Contributed Papers 1557, Econometric Society.
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