Sequential Equilibria in Bayesian Games with Communication
We study the eﬀects of communication in Bayesian games when the players are sequentially rational but some combinations of types have zero probability. Not all communication equilibria can be implemented as sequential equilibria. We deﬁne the set of strong sequential equilibria (SSCE) and characterize it. SSCE diﬀers from the concept of sequential communication equilibrium (SCE) deﬁned by Myerson (1986) in that SCE allows the possibility of trembles by the mediator. We show that these two concepts coincide when there are three or more players, but the set of SSCE may be strictly smaller than the set of SCE for two-player games.
Gerardi, Dino and Myerson, Roger B., "Sequential Equilibria in Bayesian Games with Communication" (2005). Cowles Foundation Discussion Papers. 1829.