The Analysis of Pre-play Communication under Adaptive Conjectures
Ryosuke Ishii ()
Additional contact information
Ryosuke Ishii: Institute of Economic Research, Kyoto University
No 652, KIER Working Papers from Kyoto University, Institute of Economic Research
This paper examines the sets of strategies that are stable for a stochastic process in cheap talk 2×2 coordination games. Relaxing the rationality condition assumed in previous literature and instead assuming what we call adaptive conjecture, we show that efficient outcomes are more difficult to achieve in medium term analysis. In addition, the outcomes that survive in the long term are Evolutionary Stable Sets, and in the medium term they are Neutrally Stable Strategies. Periodically each agent has an opportunity to change her strategy to one deemed more successful against the current population based on conjectures that are not always identical to the true action off the equilibrium path. Even if the message set is large enough, both efficient and inefficient equilibrium outcomes are stable in contrast to the results of previous literature where only efficient outcomes are stable.
Keywords: coordination games; communication; evolution; efficiency; cheap talk; Evolutionary Stable Set; Neutrally Stable Strategy. (search for similar items in EconPapers)
References: Add references at CitEc
Citations: Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:652
Access Statistics for this paper
More papers in KIER Working Papers from Kyoto University, Institute of Economic Research Contact information at EDIRC.
Bibliographic data for series maintained by Ryo Okui (). This e-mail address is bad, please contact .