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Commitments, Intentions, Truth and Nash Equilibria

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  • Schlag, Karl H.
  • Vida, Péter

Abstract

Games with multiple Nash equilibria are believed to be easier to play if players can communicate. We present a simple model of communication in games and investigate the importance of when communication takes place. Sending a message before play captures talk about intentions, after play captures talk about past commitments. We focus on equilibria where messages are believed whenever possible. Applying our results to Aumann’s Stag Hunt game we find that communication is useless if talk is about commitments, while the efficient outcome is selected if talk is about intentions. This confirms intuition and empirical findings in the literature.

Suggested Citation

  • Schlag, Karl H. & Vida, Péter, 2013. "Commitments, Intentions, Truth and Nash Equilibria," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 438, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:438
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    References listed on IDEAS

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    Cited by:

    1. Forges, Françoise & Horst, Ulrich, 2018. "Sender–receiver games with cooperation," Journal of Mathematical Economics, Elsevier, vol. 76(C), pages 52-61.
    2. Sobel, Joel, 2017. "A note on pre-play communication," University of California at San Diego, Economics Working Paper Series qt68d1t1xg, Department of Economics, UC San Diego.
    3. Schlag, Karl H. & Vida, Péter, 2015. "Believing when Credible: Talking about Future Plans and Past Actions," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 517, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    4. Karl H. Schlag & Péter Vida, 2021. "Believing when credible: talking about future intentions and past actions," International Journal of Game Theory, Springer;Game Theory Society, vol. 50(4), pages 867-889, December.
    5. Sobel, Joel, 2017. "A note on pre-play communication," Games and Economic Behavior, Elsevier, vol. 102(C), pages 477-486.
    6. Karl H. Schlag & Péter Vida, 2014. "Believing when Credible: Talking about Future Plans," Vienna Economics Papers vie1409, University of Vienna, Department of Economics.
    7. Karl H. Schlag & Péter Vida, 2014. "Believing when Credible: Talking about Future Plans," Vienna Economics Papers 1409, University of Vienna, Department of Economics.

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    More about this item

    Keywords

    Pre-play communication; cheap talk; coordination.;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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