We consider a Bayesian game, namely the Battle of the Sexes with private information, in which each player has two types, High and Low. We allow cheap talk regarding players' types before the game and prove that the unique fully revealing symmetric cheap talk equilibrium exists for a low range...

We consider the well-analyzed abatement game (Barrett 1994) and prove that correlation among the players (nations) can strictly improve upon the Nash equilibrium payoffs. As these games are potential games, correlated equilibrium - CE - (Aumann 1974, 1987) cannot improve upon Nash; however we...

We provide a full characterisation of the set of trading equilibria (in which all goods are traded at a positive price) in a strategic market game (as introduced by Shapley and Shubik),for both the "buy and sell" and the "buy or sell" versions of this model under standard assumptions on the...

We consider the set-up of a Japanese-English auction with exogenously fixed discrete bid levels for the wallet game with two bidders. We prove that bidding twice the signal - the equilibrium strategy with continuous bid levels - is never an equilibrium in this set up. We show that partition...

We run a laboratory experiment with a two-person game with unique pure Nash equilibrium which is also the solution of the iterative elimination of strictly dominated strategies. The subjects are asked to commit to a device that randomly picks one of three symmetric outcomes in this game...

We consider an experiment with a version of the Battle of the Sexes game with two-sided private information, preceded by a round of either one-way or two-way cheap talk. We compare different treatments to study truthful revelation of information and subsequent payoffs from the game. We find that...