Abstract
This paper identifies evolutionarily stable outcomes in games in which one player has private information and the other takes a payoff-relevant action. The informed player can communicate at little cost. Outcomes satisfying a set-valued evolutionary stability condition must exist and be efficient in common-interest games. When there is a small cost associated with using each message the outcome preferred by the informed player is stable. The paper introduces a nonequilibrium, set-valued stability notion of entry resistant sets. For games with partial common interest, the no-communication outcome is never an element of an entry resistant set. Journal of Economic Literature Classification Numbers: C72, D82.
| Original language | English (US) |
|---|---|
| Pages (from-to) | 547-575 |
| Number of pages | 29 |
| Journal | Games and Economic Behavior |
| Volume | 5 |
| Issue number | 4 |
| DOIs | |
| State | Published - Oct 1993 |
| Externally published | Yes |
ASJC Scopus subject areas
- Finance
- Economics and Econometrics