We present an extension to any finite complete information game with two players. In the extension, players are allowed to communicate directly and, additionally, send private messages to a simple, detail-free mediator, which, in turn, makes public announcements as a deterministic function of...

Two players can make use of a trusted third party who mediates and partially resolves their conflict. Usually, the mediator should be aware of the situation and give suggestions to the players accordingly. However, a corrupt mediator can have a big influence on the outcome of the game. We single...

We consider a specific parametric version of Chicken and two different correlation devices, public and private, with the same expected payoffs in equilibrium, which is also the best correlated equilibrium payoff for the game. Despite our choices of parameters (payoffs) in the game, in an...

We report experimental evidence showing a positive effect of redistribution on economic efficiency via the self-enforcement of property rights, and identify which status groups benefit more and which less. We model an economy in which wealth is produced if players voluntarily comply with...

In many strategic environments, information acquisition is a central component of the game that is played. Being uncertain about a payoff-relevant state, a player in a game has a two-fold incentive to acquire information: learning the state and learning what others know. We develop a model of...

We show that a set of outcomes outside the convex hull of Nash equilibria can be asymptotically stable with respect to convex monotonic evolutionary dynamics. Boundedly rational agents receive signals and condition the choice of strategies on the signals. A set of conditional strategies is...

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 pos-sibly infinitely long...

In a correlated equilibrium, the players' choice of actions is affected by random, correlated messages that they receive from an outside source, or mechanism. This allows for more equilibrium outcomes than without such messages (pure-strategy equilibrium) or with statistically independent ones...

In a coordination game such as the Battle of the Sexes, agents can condition their plays on external signals that can, in theory, lead to a Correlated Equilibrium that can improve the overall payoffs of the agents. Here we explore whether boundedly rational, adaptive agents can learn to...

It is known that there are uncoupled learning heuristics leading to Nash equilibrium in all finite games. Why should players use such learning heuristics and where could they come from? We show that there is no uncoupled learning heuristic leading to Nash equilibrium in all finite games that a...