Abstract: While in previous models of pre-play communication players
are forced to communicate, we investigate what happens if players can choose
not to
participate in this cheap talk. Outcomes are predicted by analyzing evolutionary
stability in a population of a priori identical players. If the game following
the communication rewards players who choose the same action then an efficient
outcome is only guaranteed when participation in the pre-play communication
is voluntary. If however players aim to coordinate on choosing different actions
in the underlying game and there are sufficiently many messages then the
highest payoff is selected when players are forced to talk to each other before
playing the game.
Key words: Evolutionarily stable sets, pure coordination, cheap talk.
Classification Numbers: C72, C79.
International Journal of Game Theory