Selecting Cheap-Talk Equilibria∗
نویسندگان
چکیده
There are typically multiple equilibrium outcomes in the Crawford-Sobel (CS) model of strategic information transmission. This paper identifies a simple condition on equilibrium payoffs, called NITS, that selects among CS equilibria. Under a commonly used regularity condition, only the equilibrium with the maximal number of induced actions satisfies NITS. We discuss various justifications for NITS, including perturbed cheap-talk games with non-strategic players or costly lying. We also apply NITS to other models of cheap-talk, illustrating its potential beyond the CS framework. Journal of Economic Literature Classification Numbers: C72, D81.
منابع مشابه
Selecting Cheap-talk Equilibria Selecting Cheap-talk Equilibria
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The copyright to this Article is held by the Econometric Society. It may be downloaded, printed and reproduced only for educational or research purposes, including use in course packs. No downloading or copying may be done for any commercial purpose without the explicit permission of the Econometric Society. For such commercial purposes contact the Office of the Econometric Society (contact inf...
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