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Communication, complexity, and evolutionary stability

Author

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  • Karl WÄrneryd

    () (Department of Economics, Stockholm School of Economics, Box 6501, S-113 83 Stockholm, Sweden)

Abstract

In games with costless preplay communication, some strategies are more complex than others in the sense that they induce a finer partition of the set of states of the world. This paper shows that if the concept of evolutionary stability, which is argued to be a natural solution concept for communication games, is modified to take lexicographic complexity preferences into account, then for a class of games of common interest only communication strategies that induce payoff-dominant Nash outcomes of the underlying game are stable.

Suggested Citation

  • Karl WÄrneryd, 1998. "Communication, complexity, and evolutionary stability," International Journal of Game Theory, Springer;Game Theory Society, vol. 27(4), pages 599-609.
  • Handle: RePEc:spr:jogath:v:27:y:1998:i:4:p:599-609 Note: Received April 1998/Final version September 1998
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    References listed on IDEAS

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    1. Warneryd, Karl, 1991. "Evolutionary stability in unanimity games with cheap talk," Economics Letters, Elsevier, vol. 36(4), pages 375-378, August.
    2. Kalai, Ehud & Stanford, William, 1988. "Finite Rationality and Interpersonal Complexity in Repeated Games," Econometrica, Econometric Society, vol. 56(2), pages 397-410, March.
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    Cited by:

    1. Stefano Demichelis & Jorgen W. Weibull, 2008. "Language, Meaning, and Games: A Model of Communication, Coordination, and Evolution," American Economic Review, American Economic Association, pages 1292-1311.
    2. Heller, Yuval & Mohlin, Erik, 2014. "Coevolution of Deception and Preferences: Darwin and Nash Meet Machiavelli," MPRA Paper 58255, University Library of Munich, Germany.

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