Announcement wars as an equilibrium selection device

This paper attempts to give a rationale to public announcements, so often observed in the real world, and to formalize the idea that they can be used as a form of equilibrium selection device when multiple equilibria arise. It also shows how announcements solve the problems of coordination failures as predicted by the empirical literature based on experimental studies.

[1]  T. Schelling,et al.  The Strategy of Conflict. , 1961 .

[2]  A. Rubinstein.  Perfect Equilibrium in a Bargaining Model , 1982 .

[3]  J. Sobel,et al.  STRATEGIC INFORMATION TRANSMISSION , 1982 .

[4]  Robert Forsythe,et al.  Selection Criteria in Coordination Games: Some Experimental Results , 1987 .

[5]  Joseph Farrell.  Cheap Talk, Coordination, and Entry , 1987 .

[6]  Joseph Farrell.  Communication, coordination and Nash equilibrium , 1988 .

[7]  Andrew John,et al.  Coordinating Coordination Failures in Keynesian Models , 1988 .

[8]  T. W. Ross,et al.  Communication in Coordination Games , 1992 .

[9]  Robert Forsythe,et al.  COMMUNICATION IN THE BATTLE OF THE SEXES GAME , 1989 .

[10]  A. Rubinstein,et al.  Bargaining and Markets , 1991 .

[11]  Matthew Rabin,et al.  A Model of Pre-game Communication , 1991 .

[12]  R. Gibbons.  Game theory for applied economists , 1992 .

[13]  Henri Theil,et al.  On the Theory of Economic Policy , 1992 .

[14]  Robin P. Cubitt.  Corporatism, Monetary Policy and Macroeconomic Performance: A Simple Game Theoretic Analysis , 1995 .

[15]  Christian Gourieroux,et al.  Simulation-based econometric methods , 1996 .

[16]  R. Cooper,et al.  Coordination Games: Technological Complementarities , 1999 .

[17]  Robert D. Cooter,et al.  The Strategic Constitution , 2000 .

[18]  James Renegar,et al.  A mathematical view of interior-point methods in convex optimization , 2001, MPS-SIAM series on optimization.

[19]  Daniel Bienstock,et al.  Potential Function Methods for Approximately Solving Linear Programming Problems: Theory and Practice , 2002 .

[20]  Jean-Charles Régin,et al.  Integration of AI and OR Techniques in Constraint Programming for Combinatorial Optimization Problems , 2004, Lecture Notes in Computer Science.

[21]  P. Jean-Jacques Herings,et al.  Fuzzy play, matching devices and coordination failures , 2001, Int. J. Game Theory.

[22]  N. Acocella,et al.  Tinbergen and Theil Meet Nash: Controllability in Policy Games , 2005 .

[23]  J. Morgan,et al.  Cheap Talk , 2005 .

[24]  J. Gabszewicz.  La différenciation des produits , 2006 .

[25]  V. Ginsburgh,et al.  Handbook of the Economics of the Art and Culture , 2006 .

[26]  D. Peeters,et al.  Residential equilibrium in a multifractal metropolitan area , 2010 .

[27]  A. H. Hallett,et al.  DYNAMIC CONTROLLABILITY WITH OVERLAPPING TARGETS: OR WHY TARGET INDEPENDENCE MAY NOT BE GOOD FOR YOU , 2007, Macroeconomic Dynamics.

[28]  W. Pohlmeier,et al.  High frequency financial econometrics : recent developments , 2007 .

[29]  Nicolas Boccard,et al.  Regulating Quality by Regulating Quantity: A Case against Minimum Quality Standards , 2008 .

[30]  N. Acocella,et al.  The existence of Nash equilibria in n-player LQ-games, with applications to international monetary and trade agreements * , 2008 .

[31]  J. Sobel,et al.  Selecting Cheap‐Talk Equilibria , 2008 .

[32]  Jacques-François Thisse,et al.  Economic Geography: The Integration of Regions and Nations , 2008 .

[33]  D. Giovanni,et al.  Policy games, policy neutrality and Tinbergen controllability under rational expectations , 2008 .

[34]  G. Ponthiere,et al.  Wives, husbands and wheelchairs: Optimal tax policy under gender-specific health , 2009 .

[35]  Alain Pholo Bala.  Gates, hubs and urban primacy in Sub-Saharan Africa , 2009 .

[36]  Nicolas Boccard,et al.  Entry accommodation under multiple commitment strategies: judo economics revisited , 2009 .

[37]  R. Boucekkine,et al.  Sustainability, optimality, and viability in the Ramsey model , 2009 .

[38]  J. Rombouts,et al.  Nonparametric Copula-Based Test for Conditional Independence with Applications to Granger Causality , 2012 .

[39]  Nicolas Boccard.  On Efficiency, Concentration and Welfare , 2009 .

[40]  Laurence A. Wolsey,et al.  Lifting group inequalities and an application to mixing inequalities , 2009 .

[41]  J. Gabszewicz.  A note on price competition in product differentiation models , 2009 .

[42]  Y. Nesterov,et al.  Local quadratic convergence of polynomial-time interior-point methods for conic optimization problems , 2009 .

[43]  A. Mauleon,et al.  Strongly rational sets for normal-form games , 2009 .

[44]  Jacques-François Thisse,et al.  On the Impact of Trade on Industrial Structures: The Role of Entry Cost Heterogeneity , 2009 .

[45]  Eric Toulemonde.  The principle of mutual recognition - A source of divergence ? , 2009 .

[46]  Olivier Bos.  How lotteries outperform auctions for charity , 2009 .

[47]  Y. Smeers,et al.  Multi-assets real options , 2009 .

[48]  K. Behrens,et al.  Transfer pricing rules, OECD guidelines, and market distortions , 2009 .

[49]  Olivier Bos,et al.  All-Pay Auctions with Endogenous Rewards , 2009 .

[50]  S. Zanaj.  Product differentiation and vertical integration in presence of double marginalization , 2009 .

[51]  Henry Tulkens,et al.  'Mitigation, Adaptation, Suffering': In Search of the Right Mix in the Face of Climate Change , 2009, SSRN Electronic Journal.

[52]  Claire Dujardin,et al.  Neighbourhood effects and endogeneity issues , 2009 .

[53]  D. Giovanni,et al.  Conflict of interests, (implicit) coalitions and Nash policy games , 2009 .

[54]  J. Dávila,et al.  On the fiscal treatment of life expectancy related choices , 2009 .

[55]  Pierre Picard,et al.  On spatial equilibria in a social interaction model , 2011, J. Econ. Theory.

[56]  Jorge Alcalde-Unzu,et al.  Exchange of indivisible goods and indifferences: The Top Trading Absorbing Sets mechanisms , 2009, Games Econ. Behav..

[57]  Laurence Jacquet,et al.  A Comparison of Optimal Tax Policies When Compensation or Responsibility Matter , 2009, SSRN Electronic Journal.

[58]  P. Pestieau,et al.  Voting on pensions: sex and marriage , 2011 .

[59]  M. Marinucci.  Endogenous Network Formation in Patent Contests and its Role as a Barrier to Entry , 2009 .

[60]  David de la Croix,et al.  How powerful is demography? The Serendipity Theorem revisited , 2012 .

[61]  Luc Bauwens,et al.  On Marginal Likelihood Computation in Change-Point Models , 2012, Comput. Stat. Data Anal..