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Information Transmission and Preference Similarity

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  • Andreas Blume

    (Univ. of Iowa)

Abstract

This paper examines sets of Nash equilibria in sender-receiver games that are stable against replacement by alternative Nash equilibria. Such stable sets exist. In {\em partial common interest games} they contain only informative equilibria. The stability requirement sharpens currently available predictions for such games by (1) weakening the partial common interest condition, (2) ruling out strictly dominated actions, (3) reflecting the informativeness of the sender's strategy in the receiver's reply, and (4) by ruling out pooling actions. This approach is then used as a step toward unifying the study of partial common interest games and of Crawford and Sobel's parametric model of preference similarity.

Suggested Citation

  • Andreas Blume, 1996. "Information Transmission and Preference Similarity," Game Theory and Information 9605004, University Library of Munich, Germany.
    • Handle: RePEc:wpa:wuwpga:9605004
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    References listed on IDEAS

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    13. Blume, Andreas, 1996. "Neighborhood Stability in Sender-Receiver Games," Games and Economic Behavior, Elsevier, vol. 13(1), pages 2-25, March.
    14. Austen-Smith, David & Banks, Jeffrey S., 2000. "Cheap Talk and Burned Money," Journal of Economic Theory, Elsevier, vol. 91(1), pages 1-16, March.
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    Cited by:

    1. Blume, Andreas & DeJong, Douglas V. & Kim, Yong-Gwan & Sprinkle, Geoffrey B., 2001. "Evolution of Communication with Partial Common Interest," Games and Economic Behavior, Elsevier, vol. 37(1), pages 79-120, October.

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    More about this item

    JEL classification:

    • C7 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory
    • D8 - Microeconomics - - Information, Knowledge, and Uncertainty

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