A Communication Proof Equilibrium Concept

Abstract

This paper proposes an equilibrium concept for the classes of environments in which players can cornmunicate with each other but cannot rnake binding agreernents. This Cornmunication-proof equilibrium is intended to be regarded as an extension of both Coalition and Renegotiation-proof equilibria. Conceptual foundations for this particular definition are widely discussed as it is confronted with other definitions in this class of environments. The definition is extended to infinite horizon garnes using the von Neumann and Morgenstern's concept of abstract stable sets.