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Sequential equilibria in Bayesian games with communication

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  • Gerardi, Dino
  • Myerson, Roger B.

Abstract

We study the effects of communication in Bayesian games when the players are sequentially rational but some combinations of types have zero probability. Not all communication equilibria can be implemented as sequential equilibria. We define the set of strong sequential equilibria (SSCE) and characterize it. SSCE differs from the concept of sequential communication equilibrium (SCE) defined by Myerson (1986) in that SCE allows the possibility of trembles by the mediator. We show that these two concepts coincide when there are three or more players, but the set of SSCE may be strictly smaller than the set of SCE for two-player games.
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Suggested Citation

  • Gerardi, Dino & Myerson, Roger B., 2007. "Sequential equilibria in Bayesian games with communication," Games and Economic Behavior, Elsevier, vol. 60(1), pages 104-134, July.
    • Handle: RePEc:eee:gamebe:v:60:y:2007:i:1:p:104-134
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    Cited by:

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    3. Izmalkov, Sergei & Lepinski, Matt & Micali, Silvio, 2011. "Perfect implementation," Games and Economic Behavior, Elsevier, vol. 71(1), pages 121-140, January.
    4. Benjamin Balzer & Johannes Schneider, 2022. "Mechanism Design with Informational Punishment," Papers 2201.01149, arXiv.org, revised Aug 2022.
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    8. Sergei Izmalkov & Matt Lepinski & Silvio Micali, 2010. "Perfect Implementation," Working Papers w0140, New Economic School (NES).
    9. Dai Zusai, 2012. "Excess Liquidity against Predation," DETU Working Papers 1201, Department of Economics, Temple University.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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