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Simple Mediation in a Cheap-Talk Game

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  • Chirantan Ganguly
  • Indrajit Ray

Abstract

In the Crawford-Sobel (uniform, quadratic utility) cheap-talk model, we consider a simple mediation scheme (a communication device) in which the informed agent reports one of N possible elements of a partition to the mediator and then the mediator suggests one of N actions to the uninformed decision-maker according to the probability distribution of the device. We show that such a simple mediated equilibrium cannot improve upon the unmediated N-partition Crawford-Sobel equilibrium when the preference divergence parameter (bias) is small.

Suggested Citation

  • Chirantan Ganguly & Indrajit Ray, 2005. "Simple Mediation in a Cheap-Talk Game," Discussion Papers 05-08, Department of Economics, University of Birmingham, revised Nov 2009.
    • Handle: RePEc:bir:birmec:05-08
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    References listed on IDEAS

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    Cited by:

    1. Mark Whitmeyer, 2019. "Bayesian Elicitation," Papers 1902.00976, arXiv.org, revised Feb 2024.

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    More about this item

    Keywords

    Cheap Talk; Mediated Equilibrium;

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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