This paper analyzes the implementation of correlated equilibria that are immune to joint deviations of coalitions by cheap-talk protocols. We construct a universal cheap-talk protocol (a polite protocol that uses only 2-player private channels) that is resistant to deviations of fewer than half the players, and using it, we show that a large set of correlated equilibria can be implemented as Nash equilibria in the extended game with cheap-talk. Furthermore, we demonstrate that in general there is no cheap-talk protocol that is resistant for deviations of half the players.
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Paper provided by University Library of Munich, Germany in its series MPRA Paper with number
7716.
Find related papers by JEL classification: C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
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Robert J. Aumann & Sergiu Hart, 2003.
"Long Cheap Talk,"
Econometrica,
Econometric Society, vol. 71(6), pages 1619-1660, November.
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Other versions:
Robert J. Aumann & Sergiu Hart, 2002.
"Long Cheap Talk,"
Discussion Paper Series
dp284, Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem, revised Nov 2002.
[Downloadable!]
Ehud Lehrer & Sylvain Sorin, 1994.
"One-Shot Public Mediated Talk,"
Discussion Papers
1108, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
[Downloadable!]