Robust almost fully revealing equilibria in multi-sender cheap talk

noisycheap10.pdf315 KB

Abstract:

We show that in multi-sender cheap talk games, if the state space is large enough, then there exist equilibria arbitrarily close to full revelation of the state that are robust to introducing imperfections in the senders’ observations. The result implies that even when only equilibria robust to noise are considered, if there are multiple experts to consult with and the state space is large, there is a communication equilibrium that is strictly better for the principal than delegating the decision right to one of the experts.

Last updated on 12/04/2012