IDEAS home Printed from https://ideas.repec.org/
MyIDEAS: Log in (now much improved!) to save this article

A detail-free mediator

  • Vida, Péter
  • Āzacis, Helmuts

We present a cheap talk extension to any two-player, finite, complete information game, and ask what correlations over actions are implementable in Nash equilibria of the extended game. In the extension, players communicate repeatedly through a detail-free mediator that has been studied in Lehrer (1991) and in Gossner and Vieille (2001). The extension captures situations in which people can observe the opponentʼs face during the conversation. While Gossner and Vieille (2001) prove that no correlation can be securely implemented by using only this mediator, we prove a result closer to Lehrer (1991), namely, that the Nash equilibrium payoffs of the extended game essentially coincide with the correlated equilibrium payoffs of the underlying game. The contrasting results can be explained with our additional assumptions that the players can also communicate directly and, more importantly, the private messages sent to the mediator can be recorded and revealed later in the conversation.

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://www.sciencedirect.com/science/article/pii/S0899825613000699
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Article provided by Elsevier in its journal Games and Economic Behavior.

Volume (Year): 81 (2013)
Issue (Month): C ()
Pages: 101-115

as
in new window

Handle: RePEc:eee:gamebe:v:81:y:2013:i:c:p:101-115
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622836

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. Gossner, Olivier, 1998. "Secure Protocols or How Communication Generates Correlation," Journal of Economic Theory, Elsevier, vol. 83(1), pages 69-89, November.
  2. Gerardi, Dino, 2004. "Unmediated communication in games with complete and incomplete information," Journal of Economic Theory, Elsevier, vol. 114(1), pages 104-131, January.
  3. Ben-Porath, Elchanan, 1998. "Correlation without Mediation: Expanding the Set of Equilibrium Outcomes by "Cheap" Pre-play Procedures," Journal of Economic Theory, Elsevier, vol. 80(1), pages 108-122, May.
  4. Ben-Porath, Elchanan, 2003. "Cheap talk in games with incomplete information," Journal of Economic Theory, Elsevier, vol. 108(1), pages 45-71, January.
  5. Robert J. Aumann & Sergiu Hart, 2003. "Long Cheap Talk," Econometrica, Econometric Society, vol. 71(6), pages 1619-1660, November.
    • Robert J. Aumann & Sergiu Hart, 2002. "Long Cheap Talk," Discussion Paper Series dp284, The Federmann Center for the Study of Rationality, the Hebrew University, Jerusalem, revised Nov 2002.
  6. Ehud Lehrer, 1988. "Internal Correlation in Repeated Games," Discussion Papers 800, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  7. Heller, Yuval, 2010. "Minority-proof cheap-talk protocol," Games and Economic Behavior, Elsevier, vol. 69(2), pages 394-400, July.
  8. FORGES, Françoise, . "Universal mechanisms," CORE Discussion Papers RP 914, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  9. R. Vijay Krishna, 2004. "Communication in Games of Incomplete Information: The Two-player Case," ESE Discussion Papers 125, Edinburgh School of Economics, University of Edinburgh.
  10. Forges, Françoise & Vida, Péter, 2013. "Implementation of communication equilibria by correlated cheap talk: The two-player case," Theoretical Economics, Econometric Society, vol. 8(1), January.
  11. Cavaliere, Alberto, 2001. " Coordination and the Provision of Discrete Public Goods by Correlated Equilibria," Journal of Public Economic Theory, Association for Public Economic Theory, vol. 3(3), pages 235-55.
  12. Xavier Jarque & Clara Ponsati & Jozsef Sakovics, 2001. "Mediation: Incomplete information bargaining with filtered communication," ESE Discussion Papers 75, Edinburgh School of Economics, University of Edinburgh.
  13. Vanessa Teague, 2008. "Problems With Coordination in Two-Player Games: Comment on "Computational Complexity and Communication"," Econometrica, Econometric Society, vol. 76(6), pages 1559-1564, November.
  14. Gossner, Olivier, 2000. "Comparison of Information Structures," Games and Economic Behavior, Elsevier, vol. 30(1), pages 44-63, January.
  15. Lehrer, Ehud, 1996. "Mediated Talk," International Journal of Game Theory, Springer;Game Theory Society, vol. 25(2), pages 177-88.
  16. Amparo Urbano & Jose E. Vila, 2002. "Computational Complexity and Communication: Coordination in Two-Player Games," Econometrica, Econometric Society, vol. 70(5), pages 1893-1927, September.
  17. Olivier Gossner & Nicolas Vieille, 2001. "Repeated communication through the mechanism," International Journal of Game Theory, Springer;Game Theory Society, vol. 30(1), pages 41-60.
  18. Aumann, Robert J., 1974. "Subjectivity and correlation in randomized strategies," Journal of Mathematical Economics, Elsevier, vol. 1(1), pages 67-96, March.
  19. Lehrer, Ehud & Sorin, Sylvain, 1997. "One-Shot Public Mediated Talk," Games and Economic Behavior, Elsevier, vol. 20(2), pages 131-148, August.
  20. repec:dau:papers:123456789/6031 is not listed on IDEAS
  21. repec:dau:papers:123456789/6244 is not listed on IDEAS
  22. Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, December.
  23. Amparo Urbano & Jose Vila, 2004. "Computationally restricted unmediated talk under incomplete information," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 23(2), pages 283-320, January.
Full references (including those not matched with items on IDEAS)

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

When requesting a correction, please mention this item's handle: RePEc:eee:gamebe:v:81:y:2013:i:c:p:101-115. 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: (Shamier, Wendy)

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.

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.