Optimal Use of Communication Resources


Neyman A, Gossner O, Hernandez P. Optimal Use of Communication Resources. Econometrica. 2006 :1603 - 1636.
Paper279 KB


We study a repeated game with asymmetric information about a dynamic state of nature. In the course of the game, the better informed player can communicate some or all of his information with the other. Our model covers costly and/or bounded communication. We characterize the set of equilibrium payoffs, and contrast these with the communication equilibrium payffs, which by definition entail no communication costs.

Last updated on 11/21/2016