Econometrica: Nov 2006, Volume 74, Issue 6

Optimal Use of Communication Resources
p. 1603-1636

Olivier Gossner, Penélope Hernández, Abraham Neyman

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 to the other. Our model covers costly and/or bounded communication. We characterize the set of equilibrium payoffs and contrast these with the communication equilibrium payoffs, which by definition entail no communication costs.

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