Sequential Equilibria and Cheap Talk in Infinite Signaling Games
Abstract
This paper shows the existence of sequential and weak-best-response equilibria for cheap-talk extensions of signaling games for a class of signaling games called communication-impervious. An example shows there are well-behaved infinite signaling games with no sequential equilibria. The assumption that talk is cheap seems reasonable in many economic contexts and yields a very straightforward solution to the existence problem in infinite signaling games. The cheap-talk assumption opens the possibility of extending the methods of this paper to prove the existence of equilibrium in more-general extensive-form games with infinite action and information sets.Download Info
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Paper provided by Northwestern University, Center for Mathematical Studies in Economics and Management Science in its series Discussion Papers with number 915.
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Date of creation: Dec 1990
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Handle: RePEc:nwu:cmsems:915
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