COMMUNICATION-PROOF EQUILIBRIA IN CHEAP-TALK GAMES

Authors
Citation
A. Blume et J. Sobel, COMMUNICATION-PROOF EQUILIBRIA IN CHEAP-TALK GAMES, Journal of economic theory, 65(2), 1995, pp. 359-382
Citations number
18
Categorie Soggetti
Economics
Journal title
ISSN journal
00220531
Volume
65
Issue
2
Year of publication
1995
Pages
359 - 382
Database
ISI
SICI code
0022-0531(1995)65:2<359:CEICG>2.0.ZU;2-F
Abstract
We define communication-proof equilibria in simple games of communicat ion. These equilibria satisfy a stability condition guaranteeing that they would not be affected if new opportunities to communicate arose. We look for partitions of possible equilibria into sets of good and ba d equilibria. The good equilibria are those that cannot be destabilize d by another good equilibrium. The remaining equilibria are bad. An eq uilibrium for the original game is communication proof if its is a goo d equilibrium in a partition of this form. We prove that communication -proof equilibria exist and, for a class of common-interest games, com munication-proof outcomes are efficient. (C) 1995 Academic Press, Inc.