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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.

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Bibliographic Info

Paper provided by EconWPA in its series Game Theory and Information with number 9605004.

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Length: 27 pages
Date of creation: 24 May 1996
Date of revision:
Handle: RePEc:wpa:wuwpga:9605004

Note: Zipped using PKZIP v2.04, encoded using UUENCODE v5.15. Zipped file includes 1 file -- ui9603.wpa (Latex, 27 pages)
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  1. Stein, Jeremy C, 1989. "Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements," American Economic Review, American Economic Association, vol. 79(1), pages 32-42, March.
  2. Swinkels, J., 1991. "Evolutionary Stability with Equilibrium Entrants," Papers 9, Stanford - Institute for Thoretical Economics.
  3. Roger B. Myerson, 1986. "Credible Negotiation Statements and Coherent Plans," Discussion Papers 691, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  4. Blume, A. & Kim, Y.G. & Sobel, J., 1993. "Evolutionary Stability in Games of Communication," Working Papers 93-07, University of Iowa, Department of Economics.
  5. David Austen-Smith & Jeffrey S. Banks, 1998. "Cheap Talk and Burned Money," Discussion Papers 1245, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  6. Matthews, Steven A. & Okuno-Fujiwara, Masahiro & Postlewaite, Andrew, 1991. "Refining cheap-talk equilibria," Journal of Economic Theory, Elsevier, vol. 55(2), pages 247-273, December.
  7. E. Kohlberg & J.-F. Mertens, 1998. "On the Strategic Stability of Equilibria," Levine's Working Paper Archive 445, David K. Levine.
  8. Matsui, Akihiko, 1992. "Best response dynamics and socially stable strategies," Journal of Economic Theory, Elsevier, vol. 57(2), pages 343-362, August.
  9. Matthew Rabin and Joel Sobel., 1993. "Deviations, Dynamics and Equilibrium Refinements," Economics Working Papers 93-211, University of California at Berkeley.
  10. M. Rabin, 2010. "Communication Between Rational Agents," Levine's Working Paper Archive 539, David K. Levine.
  11. repec:att:wimass:9218 is not listed on IDEAS
  12. V. Crawford & J. Sobel, 2010. "Strategic Information Transmission," Levine's Working Paper Archive 544, David K. Levine.
  13. I. Gilboa & A. Matsui, 2010. "Social Stability and Equilibrium," Levine's Working Paper Archive 534, David K. Levine.
  14. Blume, A. & De Jong, D.V. & Kim, Y.G. & Sprinkle, G.B., 1994. "Evolution of the Meaning of Messages in Sender-Receiver Games: An Experiment," Papers 9491, Tilburg - Center for Economic Research.
  15. Blume, A., 1993. "Neighborhood Stability in Sender-Receiver Games," Working Papers 93-15, University of Iowa, Department of Economics.
  16. Georg Nöldeke & Larry Samuelson, 1992. "The Evolutionary Foundations of Backward and Forward Induction," Discussion Paper Serie B 216, University of Bonn, Germany.
  17. J. Farrell, 2010. "Meaning and Credibility in Cheap Talk Games," Levine's Working Paper Archive 533, David K. Levine.
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