Strategic information transmission with sender's approval: The single-crossing case

Stéphan Sémirat and Françoise Forges

Games and Economic Behavior, 2022, vol. 134, issue C, 242-263

Abstract: We consider games in which an informed sender first talks at no cost to a receiver; then, the latter proposes a decision and, finally, the sender accepts the proposal or “exits”. We make the following assumptions: the sender has finitely many types, the receiver's decision is real-valued, utility functions over decisions are concave, single-peaked and single-crossing, exit is damaging to the receiver. In this setup, it may happen that babbling equilibria necessarily involve exit. We nevertheless propose a constructive algorithm that achieves a pure perfect Bayesian equilibrium without exit in every game of the class considered.

Keywords: Discrete cheap talk; Participation constraints; Single-crossing (search for similar items in EconPapers)
JEL-codes: C72 D82 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:gamebe:v:134:y:2022:i:c:p:242-263

DOI: 10.1016/j.geb.2022.05.004

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