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|
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- Warneryd, Karl, 1991.
"Evolutionary stability in unanimity games with cheap talk,"
Elsevier, vol. 36(4), pages 375-378, August.
- K. Warneryd, 2010. "Evolutionary Stability in Unanimity Games with Cheap Talk," Levine's Working Paper Archive 543, David K. Levine.
- Kalai, Ehud & Stanford, William, 1988. "Finite Rationality and Interpersonal Complexity in Repeated Games," Econometrica, Econometric Society, vol. 56(2), pages 397-410, March.
- Ehud Kalai & William Stanford, 1986. "Finite Rationality and Interpersonal Complexity in Repeated Games," Discussion Papers 679, Northwestern University, Center for Mathematical Studies in Economics and Management Science.