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Coordination and Cheap Talk in a Battle of the Sexes

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  • Chirantan Ganguly
  • Indrajit Ray

Abstract

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.

Suggested Citation

  • Chirantan Ganguly & Indrajit Ray, 2013. "Coordination and Cheap Talk in a Battle of the Sexes," Discussion Papers 13-01, Department of Economics, University of Birmingham.
    • Handle: RePEc:bir:birmec:13-01
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. Joseph Farrell, 1987. "Cheap Talk, Coordination, and Entry," RAND Journal of Economics, The RAND Corporation, vol. 18(1), pages 34-39, Spring.
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    More about this item

    Keywords

    Battle of the Sexes; Private Information; Cheap Talk; Coordination; Mechanism;

    JEL classification:

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

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