Communication, correlation and cheap-talk in games with public information

Y. Heller, E. Solan, T. TOMALA

Games and Economic Behavior

January 2012, vol. 74, n°1, pp.222-234

Departments: Economics & Decision Sciences, GREGHEC (CNRS)

Keywords: Cheap-talk, Communication equilibrium, Normal-form correlated equilibrium, Distributed computation

This paper studies extensive form games with public information where all players have the same information at each point in time. We prove that when there are at least three players, all communication equilibrium payoffs can be obtained by unmediated cheap-talk procedures. The result encompasses repeated games and stochastic games