Justified Communication Equilibrium

S-Tier
Journal: American Economic Review
Year: 2021
Volume: 111
Issue: 9
Pages: 3004-34

Authors (2)

Score contribution per author:

4.022 = (α=2.01 / 2 authors) × 4.0x S-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Justified communication equilibrium (JCE) is an equilibrium refinement for signaling games with cheap-talk communication. A strategy profile must be a JCE to be a stable outcome of nonequilibrium learning when receivers are initially trusting and senders play many more times than receivers. In the learning model, the counterfactual "speeches" that have been informally used to motivate past refinements are messages that are actually sent. Stable profiles need not be perfect Bayesian equilibria, so JCE sometimes preserves equilibria that existing refinements eliminate. Despite this, it resembles the earlier refinements D1 and NWBR, and it coincides with them in co-monotonic signaling games.

Technical Details

RePEc Handle
repec:aea:aecrev:v:111:y:2021:i:9:p:3004-34
Journal Field
General
Author Count
2
Added to Database
2026-01-25