A class of strategy-correlated equilibria in sender–receiver games

This paper shows that the efficiency bound for communication equilibria identified by Goltsman et al. (2009) in the leading example of the Crawford–Sobel model can be obtained with strategy-correlated equilibria, thus preserving privacy vis-à-vis the mediator. More generally, all equilibrium outcomes of the ϵ-noise model of Blume et al. (2007), including outcomes with an uncountable infinity of equilibrium actions, can be obtained via strategy-correlated equilibria of the noise-free game. The occasional mismatch between the encoding and decoding rules used by sender and receiver in a strategy-correlated equilibrium can be interpreted as uncertainty about language use.