Sender-Receiver Games

Abstract

Standard game-theoretic solution concepts do not guarantee meaningful commu- nication in cheap-talk games. In this paper, we define a solution concept which guarantees communication for a large class of games by designing a behavior pro- tocol which the receiver uses to judge messages sent by the sender on acceptability. For that, we will make use of the Nash equilibrium concept for which truth-telling is a consequence. Uniqueness is nevertheless not a consequence, but after reasonable selection it is. Further, we will come to a method to compute all equilibria very easily.Noncooperative game theory;signalling;sender-receiver games