Econometric Society 57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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EVOLUTIONARY INSIGHTS ON THE WILLINGNESS TO COMMUNICATE.


Category: Economic Theory
Evolution and Learning III
Monday 26th August 2002, 14:30 - 16:00, Room: 5.1
Session Chair(s): Susanna Sällström, Cambridge University, UNITED KINGDOM

Presenter(s): Hurkens, Sjaak

Co-Author(s): Schlag, Karl

Keyword(s): cheap talk, evolutionarily stable sets, pure coordination

JEL(s): C72, C79

Abstract:

While in previous models of pre-play communication players are forced to communicate, we investigate what happens if players can choose not to participate in this cheap talk. We analyze evolutionary stability in one population of identical players. If the game following the communication rewards players who choose the same action, an efficient outcome is only guaranteed when participation in the communication is voluntary. If however players aim to coordinate on choosing different actions, then the highest payoff is selected when players are forced to talk to each other before playing the game.


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Paper Reference Number: 255

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57th European Meeting
25th August 2002 - 28th August 2002, Venice, Italy

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