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Implementation of Communication Equilibria by Correlated Cheap Talk: The Two-Player Case

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  • Péter Vida
  • Francoise Forges

Abstract

We show that essentially every communication equilibrium of any finite Bayesian game with two players can be implemented as a strategic form correlated equilibrium of an extended game, in which before choosing actions as in the Bayesian game, the players engage in a pos-sibly infinitely long (but in equilibrium almost surely finite), direct, cheap talk.

Suggested Citation

  • Péter Vida & Francoise Forges, 2011. "Implementation of Communication Equilibria by Correlated Cheap Talk: The Two-Player Case," CESifo Working Paper Series 3360, CESifo.
  • Handle: RePEc:ces:ceswps:_3360
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    File URL: https://www.cesifo.org/DocDL/cesifo1_wp3360.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Dmitry Sedov, 2023. "Almost-truthful interim-biased mediation enables information exchange between agents with misaligned interests," Review of Economic Design, Springer;Society for Economic Design, vol. 27(3), pages 505-546, September.
    2. Marie Laclau & Ludovic Renou & Xavier Venel, 2020. "Robust communication on networks," Papers 2007.00457, arXiv.org, revised Oct 2020.
    3. Peters, Michael & Troncoso-Valverde, Cristián, 2013. "A folk theorem for competing mechanisms," Journal of Economic Theory, Elsevier, vol. 148(3), pages 953-973.
    4. Vida, Péter & Āzacis, Helmuts, 2013. "A detail-free mediator," Games and Economic Behavior, Elsevier, vol. 81(C), pages 101-115.
    5. 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.
    6. Alonso, Ricardo & Rantakari, Heikki, 2022. "The art of brevity," Journal of Economic Behavior & Organization, Elsevier, vol. 195(C), pages 257-271.
    7. 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.
    8. Iñarra García, María Elena & Laruelle, Annick & Zuazo Garín, Peio, 2012. "Games with perceptions," IKERLANAK 9099, Universidad del País Vasco - Departamento de Fundamentos del Análisis Económico I.
    9. Chirantan Ganguly & Indrajit Ray, 2009. "Simple Mediation in a Cheap-Talk Game," Discussion Papers 05-08r, Department of Economics, University of Birmingham.
    10. Marie Laclau & Ludovic Renou & Xavier Venel, 2024. "Communication on networks and strong reliability," Working Papers hal-03099678, HAL.

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    More about this item

    Keywords

    Bayesian game; cheap talk; communication equilibrium; correlated equilibrium; pre-play communication;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D70 - Microeconomics - - Analysis of Collective Decision-Making - - - General

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