Simple Mediation in a Cheap-Talk Game

In the Crawford–Sobel (uniform, quadratic utility) cheap-talk model, we consider a simple mediation scheme (a communication device) in which informed agent reports one of N possible elements partition to mediator and then suggests actions uninformed decision-maker according probability distribution device. We show that no such mediated equilibrium can improve upon unmediated N-partition when preference divergence parameter (bias) is small.