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Unmediated communication in games with (in)complete information: the 4-player case

Author

Listed:
  • Marie Laclau
  • Péter Vida
  • Helmuts Azacis

    (CY Cergy Paris Université, THEMA)

Abstract

We show that essentially every correlated equilibrium of any finite game with complete information with four players can be implemented as a perfect Bayesian equilibrium of an extended game, in which before choosing actions in the underlying game, players exchange cheap talk messages. In particular, we improve on the result of B´ar´any (1992) and Gerardi (2004). And our result generalizes to sequential equilibria and to games with incomplete information, i.e. to the set of (regular) communication equilibria.

Suggested Citation

  • Marie Laclau & Péter Vida & Helmuts Azacis, 2024. "Unmediated communication in games with (in)complete information: the 4-player case," THEMA Working Papers 2024-07, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    • Handle: RePEc:ema:worpap:2024-07
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    File URL: https://thema.u-cergy.fr/IMG/pdf/2024-07.pdf
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    References listed on IDEAS

    as
    1. Ben-Porath, Elchanan, 2003. "Cheap talk in games with incomplete information," Journal of Economic Theory, Elsevier, vol. 108(1), pages 45-71, January.
    2. Gerardi, Dino, 2004. "Unmediated communication in games with complete and incomplete information," Journal of Economic Theory, Elsevier, vol. 114(1), pages 104-131, January.
    3. Imre Bárány, 1992. "Fair Distribution Protocols or How the Players Replace Fortune," Mathematics of Operations Research, INFORMS, vol. 17(2), pages 327-340, May.
    4. Robert J. Aumann, 1995. "Repeated Games with Incomplete Information," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262011476, April.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    nmediated communication; sequential rationality; correlated equilibria; communication equilibria; communication protocols;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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