Probabilistic cheap talk |
| |
Authors: | Bhaskar Chakravorti John P Conley Bart Taub |
| |
Institution: | (1) The Monitor Company, 25 First St., Cambridge MA 02141, USA, US;(2) Department of Economics University of Illinois, 330 Commerce West Building, Champaign, IL 61820, USA (e-mail: b-taub@uiuc.edu), US |
| |
Abstract: | We consider a model in which there is uncertainty over when a one-shot game will be played. We show how a mechanism designer
can implement desirable outcomes in certain economic games by manipulating only the probability that the game is played in
a given round while leaving all other aspects of the game unchanged. We also show that if there is no discounting, this uncertainty
imparts a sequential structure that is almost mathematically equivalent to a repeated version of the game with discounting.
In particular, a folk theorem applies to such games. Thus, games of probabilistic cheap provide a third interpretation of
the repeated game framework with the additional feature that expected payoff is invariant to the probability of the game ending.
Received: 10 May 1999/Accepted: 16 October 2000 |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|