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Multistage communication with and without verifiable types

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  • Koessler, Frédéric
  • Forges, Françoise

Abstract

We survey selected results on strategic information transmission. We distinguish between "cheap talk" and "persuasion". In the latter model, the informed player's message set depends on his type. As a benchmark, we first assume that the informed player sends a single message to the decision maker. We state characterization results for the sets of equilibrium payoffs, with and without verifiable types. We then show that multistage, bilateral communication enables the players to achieve new equilibrium outcomes, even if types are verifiable. We also propose complete characterizations of the equilibrium payoffs that are achievable with a bounded number of communication rounds.

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Bibliographic Info

Paper provided by Paris Dauphine University in its series Economics Papers from University Paris Dauphine with number 123456789/1121.

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Date of creation: Jun 2008
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Publication status: Published in International Game Theory Review, 2008, Vol. 10, no. 2. pp. 145-164.Length: 19 pages
Handle: RePEc:dau:papers:123456789/1121

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Web page: http://www.dauphine.fr/en/welcome.html
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Related research

Keywords: Cheap talk; Certification; Incomplete information; Verifiable types; Jointly controlled lotteries; Information transmission;

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References

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  1. Renault, Jérôme, 2000. "On Two-Player Repeated Games with Lack of Information on One Side and State-Independent Signalling," Economics Papers from University Paris Dauphine 123456789/6109, Paris Dauphine University.
  2. Jérôme Renault, 2001. "3-player repeated games with lack of information on one side," International Journal of Game Theory, Springer, vol. 30(2), pages 221-245.
  3. Daniel J. Seidmann & Eyal Winter, 1997. "Strategic Information Transmission with Verifiable Messages," Econometrica, Econometric Society, vol. 65(1), pages 163-170, January.
  4. Watson, Joel, 1996. "Information Transmission When the Informed Party Is Confused," Games and Economic Behavior, Elsevier, vol. 12(1), pages 143-161, January.
  5. Blume, A., 1993. "Equilibrium Refinement in Sender-Receiver Games," Working Papers 93-06, University of Iowa, Department of Economics.
  6. Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, December.
  7. V. Crawford & J. Sobel, 2010. "Strategic Information Transmission," Levine's Working Paper Archive 544, David K. Levine.
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Cited by:
  1. Péter Vida & Francoise Forges, 2011. "Implementation of Communication Equilibria by Correlated Cheap Talk: The Two-Player Case," CESifo Working Paper Series 3360, CESifo Group Munich.
  2. Verge, Thibaud & Malavolti-Grimal, Estelle & Loss, Frédéric, 2010. "Communication and Binary Decisions: Is it Better to Communicate?," Economics Papers from University Paris Dauphine 123456789/12189, Paris Dauphine University.
  3. Mikhail Golosov & Vasiliki Skreta & Aleh Tsyvinski & Andrea Wilson, 2011. "Dynamic Strategic Information Transmission," Cowles Foundation Discussion Papers 1802, Cowles Foundation for Research in Economics, Yale University, revised Jun 2011.

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