Simple Mediation in a Cheap-Talk Game
AbstractIn 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.
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Bibliographic InfoPaper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 05-08rr.
Length: 17 pages
Date of creation: Jan 2011
Date of revision:
Cheap talk; Mediated Equilibrium;
Other versions of this item:
- Chirantan Ganguly & Indrajit Ray, 2012. "Simple Mediation in a Cheap-Talk Game," Discussion Papers 05-08rrr, Department of Economics, University of Birmingham.
- Chirantan Ganguly & Indrajit Ray, 2009. "Simple Mediation in a Cheap-Talk Game," Discussion Papers 05-08r, Department of Economics, University of Birmingham.
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-02-26 (All new papers)
- NEP-CTA-2011-02-26 (Contract Theory & Applications)
- NEP-GTH-2011-02-26 (Game Theory)
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