Implementation of communication equilibria by correlated cheap talk: The two-player case

Abstract

We show that essentially every communication equilibrium of any finite Bayesian game with two players can be implemented as a strategic form correlated equilibrium of an extended game, in which before choosing actions as in the Bayesian game, the players engage in a possibly infinitely long (but in equilibrium almost surely finite), direct, cheap talk. © 2013 Péter Vida and Françoise Forges.