2006
DOI: 10.1111/j.1468-0262.2006.00720.x
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Optimal Use of Communication Resources

Abstract: We study a repeated game with asymmetric information about a dynamic state of nature. In the course of the game, the better-informed player can communicate some or all of his information to the other. Our model covers costly and/or bounded communication. We characterize the set of equilibrium payoffs and contrast these with the communication equilibrium payoffs, which by definition entail no communication costs.

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Cited by 45 publications
(86 citation statements)
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“…It can be applied to analyze the performance of coded power allocation, coded interference alignment, etc, with other information structures and by considering N ≥ 2 individual payoffs instead of a common one (e.g., in a game-theoretic setting [3]). The methodology to assess the performance of good coded policies consists in deriving the right information constraint(s) by building the proof on Shannon theory for the problem of multi-source coding with distortion over multi-user channels wide side information and then to use this constraint to find an information-constrained maximum of the payoff (common payoff case) or the set of Nash equilibrium points which are compatible with the constraint (non-cooperative game case).…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…It can be applied to analyze the performance of coded power allocation, coded interference alignment, etc, with other information structures and by considering N ≥ 2 individual payoffs instead of a common one (e.g., in a game-theoretic setting [3]). The methodology to assess the performance of good coded policies consists in deriving the right information constraint(s) by building the proof on Shannon theory for the problem of multi-source coding with distortion over multi-user channels wide side information and then to use this constraint to find an information-constrained maximum of the payoff (common payoff case) or the set of Nash equilibrium points which are compatible with the constraint (non-cooperative game case).…”
Section: Discussionmentioning
confidence: 99%
“…Because of its importance and ability to easily illustrate the proposed approach, the problem of PC in interference networks has been selected for the application of the main and general result derived in this paper; note that the latter concerns any decision-making problem which has the same structure (see Sec. II) and generalizes [3] and [4].…”
Section: Introductionmentioning
confidence: 96%
“…Since the conditional entropy H(X|Y ) is concave in the joint distribution of (X, Y ) (see, e.g., Gossner, Hernandez, and Neyman (2004), Lemma 1), we have…”
Section: Growth Of Strategy Sets 21mentioning
confidence: 99%
“…After these classic contributions, the concept has arisen separately in several fields of economics, and we provide only a brief partial survey here. Gossner, Hernández, and Neyman (2006) study repeated games in which one of the players, who can forecast the realization of future states of nature, can transmit information to others through his choice of actions. They provide a closed-form characterization, based on entropy, of the set of distributions which the players can achieve.…”
Section: Related Literaturementioning
confidence: 99%