Karl Warneryd
1993
Games and Economic Behavior 5(4):532-546, 1993
Asymmetric information games where the informed player can send a costless message (sender-receiver games) typically have equilibria where meaningful communication occurs. We therefore know such `cheap talk' can matter. Still, even when there is no conflict of interest, there are ...MORE ⇓
Asymmetric information games where the informed player can send a costless message (sender-receiver games) typically have equilibria where meaningful communication occurs. We therefore know such `cheap talk' can matter. Still, even when there is no conflict of interest, there are also equilibria where no information transmission occurs. This paper shows that for a class of games with perfectly coinciding interests modeled as asymmetric contests, where players are unsure of which role they will have, only meaningful communication is evolutionarily stable.