Cheap Talk and Co-ordination with Payoff Uncertainty

Sandeep Baliga () and Stephen Morris ()

No 1203, Cowles Foundation Discussion Papers from Cowles Foundation, Yale University

Abstract: Two players seek to co-ordinate their behavior in an incomplete information setting. We show that if each player's preferences over his opponent's action is independent of his own action or type, then cheap talk cannot expand the set of equilibrium outcomes.

Date: 1998-12
Note: CFP 1043.
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Published in Journal of Economic Theory (2002), 105(2): 450-468

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