2012RePEc: Research Papers in EconomicsRequires access

Communication, correlation and cheap-talk in games with public information

Tristan Tomala, Yuval Heller, Eilon Solan

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Abstract

This paper studies extensive form games with public information where all players have the same information at each point in time. We prove that when there are at least three players, all communication equilibrium payoffs can be obtained by unmediated cheap-talk procedures. The result encompasses repeated games and stochastic games.

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What this paper is about

This paper studies extensive form games with public information where all players have the same information at each point in time. We prove that when there are at least three players, all communication equilibrium payoffs can be obtained by unmediated cheap-talk procedures. The result encompasses repeated games and stochastic games.

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Available abstract

This paper studies extensive form games with public information where all players have the same information at each point in time. We prove that when there are at least three players, all communication equilibrium payoffs can be obtained by unmediated cheap-talk procedures. The result encompasses repeated games and stochastic games.

Key concepts: Cheap talk, Mathematical economics, Point (geometry), Repeated game, Public information, Complete information, Computer science, Economics

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