Advanced Search
MyIDEAS: Login

Communication, Risk and Efficiency in Games

Contents:

Author Info

  • Andreas Blume

    (Department of Economics, University of Iowa, Iowa City, IA 52242)

Abstract

This paper looks at simple games with one round of pre-play communication followed by a simultaneous move, complete information game. In these games the {\em curb} concept distinguishes among efficient equilibria according to their risk. The paper contains two major results. First, if only one of the players can talk, and that player's favorite outcome is a strict equilibrium in the underlying game, then, for a given size of the message space the corresponding payoffs will be the only curb equilibrium payoffs in the communication game, provided the communicating player's risk at that equilibrium is sufficiently low. Second, suppose that communicating players have a slight preference for strategies where messages communicate only their intent to play according to their preferred equilibrium. Then the curb concept distinguishes multi-sided from one-sided communication. Modifying payoffs in this way does not affect the results with one-sided communication. However with two-sided communication, and a unique strict common interest equilibrium in the underlying game, only the payoffs of that equilibrium are curb equilibrium payoffs in the communication game.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://128.118.178.162/eps/game/papers/9312/9312002.pdf
Download Restriction: no

File URL: http://128.118.178.162/eps/game/papers/9312/9312002.ps.gz
Download Restriction: no

Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 9312002.

as in new window
Length: 25 pages
Date of creation: 06 Dec 1993
Date of revision:
Handle: RePEc:wpa:wuwpga:9312002

Note: Zipped using PKZIP v2.04, encoded using UUENCODE v5.15. Zipped file includes ## files -- risk (body in TeX format, 25 pages)
Contact details of provider:
Web page: http://128.118.178.162

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. John C. Harsanyi & Reinhard Selten, 1988. "A General Theory of Equilibrium Selection in Games," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262582384, December.
  2. Blume Andreas & Kim Yong-Gwan & Sobel Joel, 1993. "Evolutionary Stability in Games of Communication," Games and Economic Behavior, Elsevier, vol. 5(4), pages 547-575, October.
  3. Kim, Y.G. & Sobel, J., 1993. "An Evolutionary Approach to Pre-Play Communication," Working Papers 93-02, University of Iowa, Department of Economics.
  4. Swinkels, Jeroen M., 1992. "Evolutionary stability with equilibrium entrants," Journal of Economic Theory, Elsevier, vol. 57(2), pages 306-332, August.
  5. Hurkens, Sjaak, 1996. "Multi-sided Pre-play Communication by Burning Money," Journal of Economic Theory, Elsevier, vol. 69(1), pages 186-197, April.
  6. Hurkens Sjaak, 1995. "Learning by Forgetful Players," Games and Economic Behavior, Elsevier, vol. 11(2), pages 304-329, November.
  7. K. Ritzberger & J. Weibull, 2010. "Evolutionary Selection in Normal-Form Games," Levine's Working Paper Archive 452, David K. Levine.
  8. Basu, K. & Weibull, J.W., 1990. "Strategy Subsets Closed Under Rational Behaviour," Papers 479, Stockholm - International Economic Studies.
  9. Cooper, Russell, et al, 1992. "Communication in Coordination Games," The Quarterly Journal of Economics, MIT Press, vol. 107(2), pages 739-71, May.
  10. I. Gilboa & A. Matsui, 2010. "Social Stability and Equilibrium," Levine's Working Paper Archive 534, David K. Levine.
  11. Ehud Kalai & Dov Samet, 1982. "Persistent Equilibria in Strategic Games," Discussion Papers 515, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  12. Van Huyck, John B. & Gillette, Ann B. & Battalio, Raymond C., 1992. "Credible assignments in coordination games," Games and Economic Behavior, Elsevier, vol. 4(4), pages 606-626, October.
  13. Bhaskar, V., 1998. "Noisy Communication and the Evolution of Cooperation," Journal of Economic Theory, Elsevier, vol. 82(1), pages 110-131, September.
  14. M. Kandori & G. Mailath & R. Rob, 1999. "Learning, Mutation and Long Run Equilibria in Games," Levine's Working Paper Archive 500, David K. Levine.
  15. Farrell, Joseph, 1988. "Communication, coordination and Nash equilibrium," Economics Letters, Elsevier, vol. 27(3), pages 209-214.
  16. Akihiko Matsui, 1989. "Cheap Talk and Cooperation in the Society," Discussion Papers 848, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  17. Carlsson, H. & Damme, E.E.C. van, 1993. "Global games and equilibrium selection," Open Access publications from Tilburg University urn:nbn:nl:ui:12-154416, Tilburg University.
  18. COOPER, R. & DEJONG, D.V. & FORSYTHE, R. & Tom Ross, 1989. "Communication In Coordination Games," Carleton Industrial Organization Research Unit (CIORU) 89-07, Carleton University, Department of Economics.
  19. Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
  20. Ellison, Glenn, 1993. "Learning, Local Interaction, and Coordination," Econometrica, Econometric Society, vol. 61(5), pages 1047-71, September.
  21. K. Warneryd, 2010. "Evolutionary Stability in Unanimity Games with Cheap Talk," Levine's Working Paper Archive 543, David K. Levine.
  22. Young, H Peyton, 1993. "The Evolution of Conventions," Econometrica, Econometric Society, vol. 61(1), pages 57-84, January.
  23. Hurkens, S., 1993. "Multi-sided Pre-play Communication by Burning Money," Discussion Paper 1993-19, Tilburg University, Center for Economic Research.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
This item has more than 25 citations. To prevent cluttering this page, these citations are listed on a separate page.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpga:9312002. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.