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16.10. Micro Theory Seminar: Wojciech Olszewski

Micro Theory Seminar with Wojciech Olszewski (Northwestern University)

Event details
What
  • Micro Theory Seminar
When Oct 16, 2019
from 16:30 to 17:45
Where faculty room
Contact Name Francesc Dilmé
Contact Email
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Topic

 

„Effective Communication in Cheap Talk Games“ and
“A Result on Convergence of Sequences of Iterations, with Applications to Best-Response Dynamic”

Abstract
 
This paper presents arguments for selecting informative equilibria in a model of cheap-talk communication. We reformulate the communication game as one in which the strategy of the informed player is an interval partition of type space instead of type-contingent messages. We show that in this game there is a largest (informally, most informative) equilibrium and describe a sense in which this equilibrium is stable. We show that the largest equilibrium is the largest equilibrium that survives iterative deletion of weakly dominated strategies and that, under a standard regularity condition, this is the only outcome that survives iterative dele-tion of weakly dominated strategies. We reformulate the results in terms of learning and demonstrate that our arguments establish that a class of adaptive dynamics converge to the largest equilibrium from a rich set of initial conditions.

 

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