Information Transmission and Preference Similarity

This paper proposes as a solution concept for games sets of Nash equilibria that are stable against replacement by alternative Nash equilibria. We prove existence, examine some variants that are related to evolutionary solution concepts, and, most importantly, offer a unified approach to predicting outcomes in sender-receiver games with imperfect incentive alignment. We strenghten predictions under partial common interest conditions as well as reject uninformative equilibria in Crawford and Sobel's parametric model of preference similarity.