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Dynamic Sender-Receiver Games

Author

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  • Renault, Jerome

    ()

  • Solan, Eilon

    ()

  • Vieille, Nicolas

    ()

Abstract

We consider a dynamic version of sender-receiver games, where the sequence of states follows an irreducible Markov chain observed by the sender. Under mild assumptions, we provide a simple characterization of the limit set of equilibrium payoffs, as players become very patient. Under these assumptions, the limit set depends on the Markov chain only through its invariant measure. The (limit) equilibrium payoffs are the feasible payoffs that satisfy an individual rationality condition for the receiver, and an incentive compatibility condition for the sender.

Suggested Citation

  • Renault, Jerome & Solan, Eilon & Vieille, Nicolas, 2012. "Dynamic Sender-Receiver Games," Les Cahiers de Recherche 966, HEC Paris.
  • Handle: RePEc:ebg:heccah:0966
    Note: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2229960
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Christoph Schottmüller, 2016. "Too good to be truthful: Why competent advisers are fired," Discussion Papers 16-10, University of Copenhagen. Department of Economics.
    2. repec:eee:gamebe:v:104:y:2017:i:c:p:329-349 is not listed on IDEAS
    3. Margaria, Chiara & Smolin, Alex, 2017. "Dynamic Communication with Biased Senders," MPRA Paper 84134, University Library of Munich, Germany.
    4. Golosov, Mikhail & Skreta, Vasiliki & Tsyvinski, Aleh & Wilson, Andrea, 2014. "Dynamic strategic information transmission," Journal of Economic Theory, Elsevier, vol. 151(C), pages 304-341.
    5. Renou, Ludovic & Tomala, Tristan, 2015. "Approximate implementation in Markovian environments," Journal of Economic Theory, Elsevier, vol. 159(PA), pages 401-442.
    6. James Best & Daniel Quigley, 2016. "Persuasion for the Long-Run," Economics Papers 2016-W12, Economics Group, Nuffield College, University of Oxford.
    7. Juan F. Escobar & Gastón Llanes, 2015. "Cooperation Dynamic in Repeated Games of Adverse Selection," Documentos de Trabajo 311, Centro de Economía Aplicada, Universidad de Chile.
    8. Grillo, Edoardo, 2016. "The hidden cost of raising voters’ expectations: Reference dependence and politicians’ credibility," Journal of Economic Behavior & Organization, Elsevier, vol. 130(C), pages 126-143.
    9. Chandrasekher, Madhav, 2015. "Unraveling in a repeated moral hazard model with multiple agents," Theoretical Economics, Econometric Society, vol. 10(1), January.

    More about this item

    Keywords

    sender-receiver; dynamic games; bayesian games; communication; repeated games;

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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