We analyze a repeated cheap-talk game in which the receiver is privately informed about the conflict of interest between herself and the sender and either the sender or the receiver controls the stakes involved in their relationship. We focus on payoff-dominant equilibria that satisfy a...

Department: Economics.

We analyze delegation of a set of decisions over time by an informed principal to a potentially biased agent. Each period the principal observes a state of the world and sends a 'cheap-talk' message to the agent, who is privately informed about her bias. We focus on principal-optimal equilibria...

This paper shows that all perfect Bayesian equilibria of a dynamic matching game with two-sided incomplete information of independent private values variety converge to competitive equilibria. Buyers purchase a bundle of heterogeneous, indivisible goods and sellers own one unit of an indivisible...

In a two-sided search market agents are paired to bargain over a unit surplus. The matching market serves as an endogenous outside option for a bargaining agent. Behavioral agents are commitment types that demand a constant portion of the surplus. The frequency of behavioral types is determined...

Cripps et al. (2005) conjectured that in an infinitely repeated game with two equally patient players, if there is positive probability that the players could be Stackelberg types, then equilibrium behavior would resemble a war of attrition, i.e., a two-sided reputation result would hold. In...

We model a long-run relationship as an infinitely repeated game played by two equally patient agents. In each period, the agents play an extensive-form game of perfect information. There is incomplete information about the type of player 1 while player 2’s type is commonly known. We show that...

Previous work shows that reputation results may fail in repeated games between two long-run players with equal discount factors. We restrict attention to an infinitely repeated game where two players with equal discount factors play a simultaneous move stage game where actions of player 2 are...