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Information Transmission and Preference Similarity


  • Blume, A.

    () (University of Iowa)


This paper proposes as a solution concept for games sets of Nash equilibria that are stable against replacement by alternative Nash equilibria. We prove existence, examine some variants that are related to evolutionary solution concepts, and, most importantly, offer a unified approach to predicting outcomes in sender-receiver games with imperfect incentive alignment. We strenghten predictions under partial common interest conditions as well as reject uninformative equilibria in Crawford and Sobel's parametric model of preference similarity.

Suggested Citation

  • Blume, A., 1997. "Information Transmission and Preference Similarity," Working Papers 97-11, University of Iowa, Department of Economics.
  • Handle: RePEc:uia:iowaec:97-11

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    References listed on IDEAS

    1. Rabin, Matthew & Sobel, Joel, 1996. "Deviations, Dynamics, and Equilibrium Refinements," Journal of Economic Theory, Elsevier, vol. 68(1), pages 1-25, January.
    2. Rabin, Matthew, 1990. "Communication between rational agents," Journal of Economic Theory, Elsevier, vol. 51(1), pages 144-170, June.
    3. Myerson, Roger B., 1989. "Credible negotiation statements and coherent plans," Journal of Economic Theory, Elsevier, vol. 48(1), pages 264-303, June.
    4. Blume Andreas & Kim Yong-Gwan & Sobel Joel, 1993. "Evolutionary Stability in Games of Communication," Games and Economic Behavior, Elsevier, vol. 5(4), pages 547-575, October.
    5. Farrell Joseph, 1993. "Meaning and Credibility in Cheap-Talk Games," Games and Economic Behavior, Elsevier, vol. 5(4), pages 514-531, October.
    6. repec:bla:joares:v:31:y:1993:i:1:p:92-112 is not listed on IDEAS
    7. repec:bla:joares:v:32:y:1994:i:2:p:224-240 is not listed on IDEAS
    8. Matthews, Steven A. & Okuno-Fujiwara, Masahiro & Postlewaite, Andrew, 1991. "Refining cheap-talk equilibria," Journal of Economic Theory, Elsevier, vol. 55(2), pages 247-273, December.
    9. Kohlberg, Elon & Mertens, Jean-Francois, 1986. "On the Strategic Stability of Equilibria," Econometrica, Econometric Society, vol. 54(5), pages 1003-1037, September.
    10. Gilboa, Itzhak & Matsui, Akihiko, 1991. "Social Stability and Equilibrium," Econometrica, Econometric Society, vol. 59(3), pages 859-867, May.
    11. Swinkels, Jeroen M., 1992. "Evolutionary stability with equilibrium entrants," Journal of Economic Theory, Elsevier, vol. 57(2), pages 306-332, August.
    12. Blume, A. & De Jong, D.V. & Kim, Y.G. & Sprinkle, G.B., 1994. "Evolution of the Meaning of Messages in Sender-Receiver Games: An Experiment," Papers 9491, Tilburg - Center for Economic Research.
    13. Blume, Andreas, 1996. "Neighborhood Stability in Sender-Receiver Games," Games and Economic Behavior, Elsevier, vol. 13(1), pages 2-25, March.
    14. Austen-Smith, David & Banks, Jeffrey S., 2000. "Cheap Talk and Burned Money," Journal of Economic Theory, Elsevier, vol. 91(1), pages 1-16, March.
    15. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    16. Stein, Jeremy C, 1989. "Cheap Talk and the Fed: A Theory of Imprecise Policy Announcements," American Economic Review, American Economic Association, vol. 79(1), pages 32-42, March.
    17. Noldeke, G. & Samuelson, L., 1992. "The Evolutionary Foundations of Backward and Forward Induction," Working papers 9218, Wisconsin Madison - Social Systems.
    18. Matsui, Akihiko, 1992. "Best response dynamics and socially stable strategies," Journal of Economic Theory, Elsevier, vol. 57(2), pages 343-362, August.
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    Cited by:

    1. Blume, Andreas & DeJong, Douglas V. & Kim, Yong-Gwan & Sprinkle, Geoffrey B., 2001. "Evolution of Communication with Partial Common Interest," Games and Economic Behavior, Elsevier, vol. 37(1), pages 79-120, October.

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    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games


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