In the classic Crawford-Sobel (CS) model of strategic communication between an informed Sender and uninformed Receiver, perfect information transmission is never achieved as an equilibrium outcome. I present a modified version of the CS cheap talk game with the following two innovations: (i) both players take actions, and (ii) actions are strategic substitutes. In contrast to the CS setup, the ...

We study the revelation principle in multistage games for perfect Bayesian equilibium and sequential equilibrium. The question of whether or not the revelation principle holds is subtle, as expanding players’ opportunities for communication expands the set of consistent beliefs at off-path information sets. In settings with adverse selection but no moral hazard, Nash, perfect Bayesian, and sequ...