Coordination and Cheap Talk in a Battle of the Sexes
We consider a Battle of the Sexes game with incomplete information and allow cheap talk regarding players' private information before the game is played. We prove that the unique fully revealing symmetric cheap talk equilibrium has a desirable coordination property. Such coordination can also be obtained as a partially revealing cheap talk equilibrium. These outcomes can also be achieved using corresponding incentive compatible mechanisms, however, for different ranges of the prior probability.
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| Length: | 12 pages |
| Date of creation: | Jan 2013 |
| Date of revision: | |
| Handle: | RePEc:bir:birmec:13-01 |
| Contact details of provider: | Postal: Edgbaston, Birmingham, B15 2TT Web page: http://www.economics.bham.ac.uk More information through EDIRC
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References listed on IDEAS
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- In-Uck Park, 2002. "Cheap-Talk Coordination of Entry by Privately Informed Firms," RAND Journal of Economics, The RAND Corporation, vol. 33(3), pages 377-393, Autumn.
- Banks, Jeffrey S. & Calvert, Randall L., 1992. "A battle-of-the-sexes game with incomplete information," Games and Economic Behavior, Elsevier, vol. 4(3), pages 347-372, July.
- Joseph Farrell, 1987. "Cheap Talk, Coordination, and Entry," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 34-39, Spring.
- Cabrales, Antonio & Garcia-Fontes, Walter & Motta, Massimo, 2000.
"Risk dominance selects the leader: An experimental analysis,"
International Journal of Industrial Organization,
Elsevier, vol. 18(1), pages 137-162, January.
- Antonio Cabrales & Walter Garcia Fontes & Massimo Motta, 1997. "Risk dominance selects the leader. An experimental analysis," Economics Working Papers 222, Department of Economics and Business, Universitat Pompeu Fabra.
- Russell Cooper & Douglas V. DeJong & Robert Forsythe & Thomas W. Ross, 1989. "Communication in the Battle of the Sexes Game: Some Experimental Results," RAND Journal of Economics, The RAND Corporation, vol. 20(4), pages 568-587, Winter.
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