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Information revelation and coordination using cheap talk in a game with two-sided private information

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  • Chirantan Ganguly

    (Queen’s University Belfast)

  • Indrajit Ray

    (Cardiff University)

Abstract

We consider a version of the Battle of the Sexes with private information and allow cheap talk regarding the players’ types before the game. We show that a desirable type-coordination property is achieved at the unique fully revealing symmetric equilibrium (when it exists). Type-coordination is also obtained in a partially revealing equilibrium that exists when the fully revealing equilibrium does not. We further prove that truthfully revealed messages, followed by actions that depend meaningfully on these messages, are not equilibrium profiles with one-sided cheap talk. Finally, fully revealing equilibria do not exist under sequential communication either.

Suggested Citation

  • Chirantan Ganguly & Indrajit Ray, 2023. "Information revelation and coordination using cheap talk in a game with two-sided private information," International Journal of Game Theory, Springer;Game Theory Society, vol. 52(4), pages 957-992, December.
    • Handle: RePEc:spr:jogath:v:52:y:2023:i:4:d:10.1007_s00182-023-00857-0
    DOI: 10.1007/s00182-023-00857-0
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    Cited by:

    1. Antonio Cabrales & Michalis Drouvelis & Zeynep Gurguy & Indrajit Ray, 2017. "Transparency is Overrated: Communicating in a Coordination Game with Private Information," CESifo Working Paper Series 6781, CESifo.
    2. Zhuozheng Li & Huanxing Yang & Lan Zhang, 2019. "Pre-communication in a coordination game with incomplete information," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(1), pages 109-141, March.
    3. Cabrales, Antonio & Drouvelis, Michalis & Gurguc, Zeynep & Ray, Indrajit, 2018. "Do we need to listen to all stakeholders?: communicating in a coordination game with private information," Cardiff Economics Working Papers E2018/23, Cardiff University, Cardiff Business School, Economics Section.

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    More about this item

    Keywords

    Battle of the sexes; Revelation of information; Cheap talk; Symmetric equilibrium; Truthfulness; Coordination;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

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