Reference

Jérôme Renault, Eilon Solan, and Nicolas Vieille, Dynamic sender–receiver games, Journal of Economic Theory, vol. 148, n. 2, March 2013, pp. 502–534.

Abstract

We consider a dynamic version of sender–receiver games, where the sequence of states follows an irreducible Markov chain observed by the sender. Under mild assumptions, we provide a simple characterization of the limit set of equilibrium payoffs, as players become very patient. Under these assumptions, the limit set depends on the Markov chain only through its invariant measure. The (limit) equilibrium payoffs are the feasible payoffs that satisfy an individual rationality condition for the receiver, and an incentive compatibility condition for the sender.

Keywords

Sender–receiver; Dynamic games; Bayesian games; Communication; Repeated games

JEL codes

  • C73: Stochastic and Dynamic Games • Evolutionary Games • Repeated Games
  • D83: Search • Learning • Information and Knowledge • Communication • Belief