Communication, complexity, and evolutionary stability

Abstract.

In games with costless preplay communication, some strategies are more complex than others in the sense that they induce a finer partition of the set of states of the world. This paper shows that if the concept of evolutionary stability, which is argued to be a natural solution concept for communication games, is modified to take lexicographic complexity preferences into account, then for a class of games of common interest only communication strategies that induce payoff-dominant Nash outcomes of the underlying game are stable.