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Correlation and unmediated cheap talk in repeated games with imperfect monitoring

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  • Heng Liu

    (University of Michigan)

Abstract

This paper studies n-player $$(n\ge 3)$$ ( n ≥ 3 ) undiscounted repeated games with imperfect monitoring. We prove that all uniform communication equilibrium payoffs of a repeated game can be obtained as Nash equilibrium payoffs of the game extended by unmediated cheap talk. We also show that all uniform communication equilibrium payoffs of a repeated game can be reached as Nash equilibrium payoffs of the game extended by a pre-play correlation device and a cheap-talk procedure that only involves public messages; furthermore, in the case of imperfect public and deterministic signals, no cheap talk is conducted on the equilibrium path.

Suggested Citation

  • Heng Liu, 2017. "Correlation and unmediated cheap talk in repeated games with imperfect monitoring," International Journal of Game Theory, Springer;Game Theory Society, vol. 46(4), pages 1037-1069, November.
  • Handle: RePEc:spr:jogath:v:46:y:2017:i:4:d:10.1007_s00182-017-0569-7
    DOI: 10.1007/s00182-017-0569-7
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