Commitments, Intentions, Truth and Nash Equilibria
Games with multiple Nash equilibria are believed to be easier to play if players can communicate. We present a simple model of communication in games and investigate the importance of when communication takes place. Sending a message before play captures talk about intentions, after play captures talk about past commitments. We focus on equilibria where messages are believed whenever possible. Applying our results to Aumannâ€™s Stag Hunt game we find that communication is useless if talk is about commitments, while the efficient outcome is selected if talk is about intentions. This confirms intuition and empirical findings in the literature.
|Date of creation:||29 Oct 2013|
|Contact details of provider:|| Postal: Geschwister-Scholl-Platz 1, D-80539 Munich, Germany|
Web page: http://www.sfbtr15.de/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Rabin, Matthew, 1990.
"Communication between rational agents,"
Journal of Economic Theory,
Elsevier, vol. 51(1), pages 144-170, June.
- M. Rabin, 2010. "Communication Between Rational Agents," Levine's Working Paper Archive 539, David K. Levine.
- Mas-Colell, Andreu & Whinston, Michael D. & Green, Jerry R., 1995. "Microeconomic Theory," OUP Catalogue, Oxford University Press, number 9780195102680.
- Ro’i Zultan, 2013. "Timing of messages and the Aumann conjecture: a multiple-selves approach," International Journal of Game Theory, Springer;Game Theory Society, vol. 42(4), pages 789-800, November.
- Roi Zultan, 2011. "Timing of Messages and the Aumann Conjecture: A multiple-Selves Approach," Working Papers 1109, Ben-Gurion University of the Negev, Department of Economics.
- Tore Ellingsen & Robert Östling, 2010. "When Does Communication Improve Coordination?," American Economic Review, American Economic Association, vol. 100(4), pages 1695-1724, September.
- Ellingsen, Tore & Östling, Robert, 2007. "When Does Communication Improve Coordination?," SSE/EFI Working Paper Series in Economics and Finance 680, Stockholm School of Economics, revised 13 Oct 2009.
- Farrell Joseph, 1993. "Meaning and Credibility in Cheap-Talk Games," Games and Economic Behavior, Elsevier, vol. 5(4), pages 514-531, October.
- Joseph Farrell., 1986. "Meaning and Credibility in Cheap-Talk Games," Economics Working Papers 8609, University of California at Berkeley.
- J. Farrell, 2010. "Meaning and Credibility in Cheap Talk Games," Levine's Working Paper Archive 533, David K. Levine.
- Farrell, Joseph, 1986. "Meaning and Credibility in Cheap-Talk Games," Department of Economics, Working Paper Series qt4968n3fz, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
- Baliga, Sandeep & Morris, Stephen, 2002. "Co-ordination, Spillovers, and Cheap Talk," Journal of Economic Theory, Elsevier, vol. 105(2), pages 450-468, August.
- Sandeep Baliga & Stephen Morris, 2000. "Coordination, Spillovers, and Cheap Talk," Discussion Papers 1301, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Joseph Farrell & Matthew Rabin, 1996. "Cheap Talk," Journal of Economic Perspectives, American Economic Association, vol. 10(3), pages 103-118, Summer.
- Berger, Ulrich, 2008. "Learning in games with strategic complementarities revisited," Journal of Economic Theory, Elsevier, vol. 143(1), pages 292-301, November.
- David Avis & Gabriel Rosenberg & Rahul Savani & Bernhard Stengel, 2010. "Enumeration of Nash equilibria for two-player games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 42(1), pages 9-37, January.
- Kartik, Navin & Ottaviani, Marco & Squintani, Francesco, 2007. "Credulity, lies, and costly talk," Journal of Economic Theory, Elsevier, vol. 134(1), pages 93-116, May. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:trf:wpaper:438. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Tamilla Benkelberg)
If references are entirely missing, you can add them using this form.