A Detail-Free Mediator

Péter Vida and Helmuts Azacis

No E2012/10, Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section

Abstract: We present an extension to any finite complete information game with two players. In the extension, players are allowed to communicate directly and, additionally, send private messages to a simple, detail-free mediator, which, in turn, makes public announcements as a deterministic function of the private messages. The extension captures situations in which people engage in face-to-face communication and can observe the opponent's face during the conversation before choosing actions in some underlying game. We prove that the set of Nash equilibrium payoffs of the extended game approximately coincides with the set of correlated equilibrium payoffs of any underlying game.

Keywords: Correlated equilibrium; detail-free mechanism; mediated pre-play communication (search for similar items in EconPapers)
JEL-codes: C72 (search for similar items in EconPapers)
Pages: 28 pages
Date: 2012-05
New Economics Papers: this item is included in nep-gth and nep-mic
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://carbsecon.com/wp/E2012_10.pdf (application/pdf)

Related works:
Journal Article: A detail-free mediator (2013)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cdf:wpaper:2012/10

Access Statistics for this paper

More papers in Cardiff Economics Working Papers from Cardiff University, Cardiff Business School, Economics Section Contact information at EDIRC.
Bibliographic data for series maintained by Yongdeng Xu ().