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Information Transmission and Preference Similarity

Author

Listed:
  • Blume, A.

    (University of Iowa)

Abstract

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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    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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