Sender-Receiver Games with Cooperation

Authors:

Forges, Françoise (University of Paris-Dauphine)
Horst, Ulrich (Humboldt University Berlin)

Abstract:

We consider generalized sender-receiver games in which the sender also has a decision to make, but this decision does not directly affect the receiver. We introduce specific perfect Bayesian equilibria, in which the players agree on a joint decision after that a message has been sent (“talk and cooperate equilibrium”, TCE). We establish that a TCE exists provided that the receiver has a “uniform punishment decision” (UPD) against the sender.

Keywords:

sender-receiver game; commitment; cooperative solution; individual rationality

JEL-Classification:

C72; C65

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