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Karl Schlag (University of Vienna)

14 November 2012 @ 12:00

 

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Date:
14 November 2012
Time:
12:00
Event Category:

“Commitments, Intentions, Truth and Nash Equilibria”

Abstract

Games with multiple Nash equilibria are believed to be easier to play if players can communicate. We present a simple model of communication in games and investigate the importance of when communication takes place. Sending a message before play captures talk about intentions, after play captures talk about past commitments. We focus on equilibria where messages are believed whenever possible. We …nd in Aumann’s Stag Hunt game that communicationis useless if talk is about commitments while the efficient outcome is selected if talk is about intentions. This confi…rms intuition and empirical …ndings in the literature.