Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/221431
Authors: 
Iorio, Karl
Manelli, Alejandro M.
Year of Publication: 
1993
Series/Report no.: 
Discussion Paper 1074
Abstract: 
Signaling games with infinite action spaces may have no sequential equilibrium. We prove that adding cheap talk to these games solves the non-existence problem; the sequential equilibrium outcome correspondence is upper hemi-continuous. In addition, when the signaling space has sufficiently many signals, any cheap talk sequential equilibrium outcome can be appproximated by a sequential (e)-equilibrium of the game without cheap talk. In these cases, adding cheap talk does not fundamentally alter the nature of the game.
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.