Co-ordination, Spillovers, and Cheap Talk

Publication Year
2002

Type

Journal Article
Abstract
We analyze the role of cheap-talk in two player games with one-sided incomplete information. We identify conditions under which (1) players can fully communicate and coordinate on efficient Nash equilibria of the underlying complete information game; and (2) players cannot communicate so cheap-talk does not alter the equilibrium set of the Bayesian game. We present examples that illustrate several issues that arise when there is two-sided incomplete information.
Journal
Journal of Economic Theory
Volume
105
Issue
2
Pages
- 468
Date Published
August 2002
ISBN
0022-0531, 0022-0531