Communication, Complexity, and Evolutionary Stability
In games with costless preplay communication, some strategies are more complex than others in the sense that they induce a finer partition of the set of states of the world. This paper shows that if the concept of evolutionary stability, which is argued to be a natural solution concept for communication games, is modified to take lexicographic complexity preferences into account, then for a class of games of common interest only communication strategies that induce payoff-dominant Nash outcomes of the underlying game are stable.
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|Date of creation:||1993|
|Date of revision:|
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- Ehud Kalai & William Stanford, 1986.
"Finite Rationality and Interpersonal Complexity in Repeated Games,"
679, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Kalai, Ehud & Stanford, William, 1988. "Finite Rationality and Interpersonal Complexity in Repeated Games," Econometrica, Econometric Society, vol. 56(2), pages 397-410, March.
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