Communication leading to nash equilibrium through robust messages S5-knowledge model case

Abstract

A communication process in the S5-knowledge model is presented which leads to a Nash equilibrium of a strategic form game through robust messages. In the communication process each player predicts the other players' actions under his/her private information. The players communicate privately their conjectures through message according to the communication graph, where each recipient of the message learns and revises his/her conjecture. The emphasis is on that each player sends not exact information about his/her individual conjecture but robust information about the conjectures to an accuracy ε. © Springer-Verlag Berlin Heidelberg 2007.