Document Type
Discussion Paper
Publication Date
12-1-2005
CFDP Number
1542
CFDP Pages
39
Abstract
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.
Recommended Citation
Gerardi, Dino and Myerson, Roger B., "Sequential Equilibria in Bayesian Games with Communication" (2005). Cowles Foundation Discussion Papers. 1829.
https://elischolar.library.yale.edu/cowles-discussion-paper-series/1829