Forming Alliances through Cheap Talk with Bounded Rational Agents

Fu, Yingting.

Abstract: I propose a model that is useful in the study of two themes: strategic misrepresentation of private information and formation of alliances. The game is a three-player dynamic game with incomplete information, in which coalition is impossible when all players are rational. I found multiple equilibria in which a perfectly rational sender can form a coalition with either a rational receiver... read more

Tufts University. Department of Economics.
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ID: tufts:21211
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