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Dynamic communication with biased senders

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  • Margaria, Chiara
  • Smolin, Alex

Abstract

We study dynamic games in which senders with state-independent payoffs communicate to a single receiver. Senders' private information evolves according to an aperiodic and irreducible Markov chain. We prove an analog of a folk theorem—that any feasible and individually rational payoff can be approximated in a perfect Bayesian equilibrium if players are sufficiently patient. In particular, there are equilibria in which the receiver makes perfectly informed decisions in almost every period, even if no informative communication can be sustained in the stage game. We conclude that repeated interaction can overcome strategic limits of communication.

Suggested Citation

  • Margaria, Chiara & Smolin, Alex, 2018. "Dynamic communication with biased senders," Games and Economic Behavior, Elsevier, vol. 110(C), pages 330-339.
    • Handle: RePEc:eee:gamebe:v:110:y:2018:i:c:p:330-339
    DOI: 10.1016/j.geb.2017.10.017
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    Cited by:

    1. Kolotilin, Anton & Li, Hongyi, 2021. "Relational communication," Theoretical Economics, Econometric Society, vol. 16(4), November.
    2. Feddersen, Timothy & Gradwohl, Ronen, 2020. "Decentralized advice," European Journal of Political Economy, Elsevier, vol. 63(C).
    3. Harry Pei, 2020. "Repeated Communication with Private Lying Cost," Papers 2006.08069, arXiv.org.
    4. Sadakane, Hitoshi, 2023. "Multistage information transmission with voluntary monetary transfers," Theoretical Economics, Econometric Society, vol. 18(1), January.
    5. Atakan, Alp & Koçkesen, Levent & Kubilay, Elif, 2020. "Starting small to communicate," Games and Economic Behavior, Elsevier, vol. 121(C), pages 265-296.
    6. Jan Knoepfle, 2024. "Dynamic Competition for Attention," Papers 2409.18595, arXiv.org, revised Oct 2024.
    7. Chen, Yi, 2022. "Dynamic delegation with a persistent state," Theoretical Economics, Econometric Society, vol. 17(4), November.
    8. Kolb, Aaron & Conitzer, Vincent, 2020. "Crying about a strategic wolf: A theory of crime and warning," Journal of Economic Theory, Elsevier, vol. 189(C).
    9. James Best & Daniel Quigley, 2016. "Persuasion for the Long-Run," Economics Papers 2016-W12, Economics Group, Nuffield College, University of Oxford.
    10. Ehud Lehrer & Dimitry Shaiderman, 2022. "Markovian Persuasion with Stochastic Revelations," Papers 2204.08659, arXiv.org, revised May 2022.
    11. Kuvalekar, Aditya & Lipnowski, Elliot & Ramos, João, 2022. "Goodwill in communication," Journal of Economic Theory, Elsevier, vol. 203(C).
    12. Arnold Polanski & Mark Quement, 2023. "The battle of opinion: dynamic information revelation by ideological senders," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(2), pages 463-483, June.
    13. Pei, Harry, 2023. "Repeated communication with private lying costs," Journal of Economic Theory, Elsevier, vol. 210(C).
    14. Meng, Delong, 2021. "On the value of repetition for communication games," Games and Economic Behavior, Elsevier, vol. 127(C), pages 227-246.

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    More about this item

    Keywords

    Bayesian games; Repeated games; Communication; Folk theorem;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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