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Unmediated communication with partially verifiable types

  • Wagner, P.Achim
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    Abstract This paper studies unmediated communication with partially verifiable types in N-player games of incomplete information. I show that with five or more players, all outcomes that are feasible with the help of a mediator can also be achieved with direct communication between players if verifiable information can be encrypted. Without encryption, the set of equilibrium outcomes attainable with direct communication is generally strictly smaller than the set of mediated equilibrium outcomes, independent of the number of players in the game.

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    Article provided by Elsevier in its journal Journal of Mathematical Economics.

    Volume (Year): 47 (2011)
    Issue (Month): 1 (January)
    Pages: 99-107

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    Handle: RePEc:eee:mateco:v:47:y:2011:i:1:p:99-107
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    1. Dino Gerardi, 2002. "Unmediated Communication in Games with Complete and Incomplete Information," Cowles Foundation Discussion Papers 1371, Cowles Foundation for Research in Economics, Yale University.
    2. Francoise Forges & Frédéric Koessler, 2006. "Long Persuasion Games," CESifo Working Paper Series 1669, CESifo Group Munich.
    3. Forges, Francoise & Koessler, Frederic, 2005. "Communication equilibria with partially verifiable types," Journal of Mathematical Economics, Elsevier, vol. 41(7), pages 793-811, November.
    4. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-51, November.
    5. 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.
    6. Ben-Porath, Elchanan, 2003. "Cheap talk in games with incomplete information," Journal of Economic Theory, Elsevier, vol. 108(1), pages 45-71, January.
    7. 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.
    8. Vijay Krishna, R., 2007. "Communication in games of incomplete information: Two players," Journal of Economic Theory, Elsevier, vol. 132(1), pages 584-592, January.
    9. Forges, Francoise, 1990. "Universal Mechanisms," Econometrica, Econometric Society, vol. 58(6), pages 1341-64, November.
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