EconPapers    
Economics at your fingertips  
 

Dynamic communication with biased senders

Chiara Margaria and Alex Smolin ()

Games and Economic Behavior, 2018, vol. 110, issue C, 330-339

Abstract: We study dynamic games in which senders with state-independent payoffs communicate to a single receiver. Senders' private information evolves according to an aperiodic and irreducible Markov chain. We prove an analog of a folk theorem—that any feasible and individually rational payoff can be approximated in a perfect Bayesian equilibrium if players are sufficiently patient. In particular, there are equilibria in which the receiver makes perfectly informed decisions in almost every period, even if no informative communication can be sustained in the stage game. We conclude that repeated interaction can overcome strategic limits of communication.

Keywords: Bayesian games; Repeated games; Communication; Folk theorem (search for similar items in EconPapers)
JEL-codes: C72 C73 D82 D83 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0899825617301896
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Dynamic Communication with Biased Senders (2017) Downloads
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:eee:gamebe:v:110:y:2018:i:c:p:330-339

DOI: 10.1016/j.geb.2017.10.017

Access Statistics for this article

Games and Economic Behavior is currently edited by E. Kalai

More articles in Games and Economic Behavior from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2020-02-19
Handle: RePEc:eee:gamebe:v:110:y:2018:i:c:p:330-339