Information-Revelation and Coordination Using Cheap Talk in a Battle of the Sexes with Two-Sided Private Information
AbstractWe consider a Battle of the Sexes game with two types, High and Low, for each player and allow cheap talk regarding players' types before the game. We prove that the unique fully revealing symmetric cheap talk equilibrium exists for a low range of prior probability of the High-Type. This equilibrium has a desirable type-coordination property: it fully coordinates on the ex-post efficient pure Nash equilbrium when the players' types are different. Type-coordination is also obtained in a partially revealing equilibrium in which only the High-type is not truthful, for a medium range of prior probability of the High-type.
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Bibliographic InfoPaper provided by Department of Economics, University of Birmingham in its series Discussion Papers with number 13-01r.
Length: 24 pages
Date of creation: Sep 2013
Date of revision:
Battle of the Sexes; Private Information; Cheap Talk; Coordination; Full Revelation;
Find related papers by JEL classification:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-11 (All new papers)
- NEP-CTA-2013-10-11 (Contract Theory & Applications)
- NEP-GTH-2013-10-11 (Game Theory)
- NEP-MIC-2013-10-11 (Microeconomics)
- NEP-NET-2013-10-11 (Network Economics)
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