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Coordination with indirect messages in the stag-hunt game
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956-5842-1-PB.pdf
Date
2017-8
Author
Büyükboyacı Hanay, Mürüvvet İlknur
Küçükşenel, Serkan
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We theoretically investigate the effect of allowing one-sided communication with costless indirect messages on stag-hunt game outcomes. Since Heinemann et al. (2009) show that players who avoid risk also avoid strategic uncertainty, we chose a sender's level of risk aversion as the indirect message. We show that if both sender and receiver interpret the message content similarly, it is possible that they end up either on the risk-dominant or on the payoffdominant equilibrium. We also show that players in the extreme risk groups are willing to declare risk attitudes truthfully to increase the probability of coordination. On the other hand, players in the medium risk-averse group are willing to mimic the risk-loving group to achieve efficient coordination
Subject Keywords
Stag-hunt game
,
Coordination
,
Risk information
,
Costless communication
URI
http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/956
https://hdl.handle.net/11511/58166
Journal
ODTÜ Gelişme Dergisi
Collections
Department of Economics, Article
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M. İ. Büyükboyacı Hanay and S. Küçükşenel, “Coordination with indirect messages in the stag-hunt game,”
ODTÜ Gelişme Dergisi
, vol. 44, no. 2, pp. 177–186, 2017, Accessed: 00, 2020. [Online]. Available: http://www2.feas.metu.edu.tr/metusd/ojs/index.php/metusd/article/view/956.