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Meaning and Credibility in Cheap-Talk Games

1986; Federal Reserve Bank of St. Louis; Linguagem: Inglês

Joseph Farrell,

Game Theory and Voting Systems

I define neologism-proofness, a refinement of perfect Bayesian equilibrium in cheap-talk games. It applies when players have a preexisting common language, so that an unexpected message′s literal meaning is clear, and only credibility restricts communication. I show that certain implausible equilibria are not neologism-proof; in some games, no equilibrium is. Journal of Economic Literature classification numbers: D83 D82 C73.