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Implementation of Communication Equilibria by Correlated Cheap Talk: The Two-Player Case

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  • Péter Vida
  • Francoise Forges

Abstract

We show that essentially every communication equilibrium of any finite Bayesian game with two players can be implemented as a strategic form correlated equilibrium of an extended game, in which before choosing actions as in the Bayesian game, the players engage in a pos-sibly infinitely long (but in equilibrium almost surely finite), direct, cheap talk.

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File URL: http://www.cesifo-group.de/portal/page/portal/DocBase_Content/WP/WP-CESifo_Working_Papers/wp-cesifo-2011/wp-cesifo-2011-02/cesifo1_wp3360.pdf
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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3360.

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Date of creation: 2011
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Handle: RePEc:ces:ceswps:_3360

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Keywords: Bayesian game; cheap talk; communication equilibrium; correlated equilibrium; pre-play communication;

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References

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  24. Vijay Krishna, R., 2007. "Communication in games of incomplete information: Two players," Journal of Economic Theory, Elsevier, vol. 132(1), pages 584-592, January.
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Citations

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Cited by:
  1. Vida, Péter & Āzacis, Helmuts, 2013. "A detail-free mediator," Games and Economic Behavior, Elsevier, vol. 81(C), pages 101-115.
  2. Chirantan Ganguly & Indrajit Ray, 2012. "Simple Mediation in a Cheap-Talk Game," Discussion Papers 05-08rrr, Department of Economics, University of Birmingham.
  3. Peters, Michael & Troncoso-Valverde, Cristián, 2013. "A folk theorem for competing mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 953-973.
  4. Laruelle, Annick & Iñarra García, María Elena & Zuazo Garín, Peio, 2012. "Games with perceptions," IKERLANAK Ikerlanak;2012-64, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.

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