A class of strategy-correlated equilibria in sender-receiver games

This paper shows that the efficiency bound for communication equilibria identified by Goltsman et al. (2009) in the leading example of the Crawford-Sobel model can be obtained with strategy-correlated equilibria, thus preserving privacy vis-à-vis the mediator. More generally, all equilibrium outcomes of the ε-noise model of Blume et al. (2007), including outcomes with an uncountable infinity of equilibrium actions, can be obtained via strategy-correlated equilibria of the noise-free game. The occasional mismatch between the encoding and decoding rules used by sender and receiver in a strategy-correlated equilibrium can be interpreted as uncertainty about language use.