Not all games with two or more Nash equilibria can be solved with pre-play communication because
A)cheap talk may be illegal under anti-trust laws.
B)if there's an incentive for one or more players to lie, then cheap talk lacks credibility.
C)Pareto Criterion might not be defined.
D)Both A and B

Question

Quizplus · Accepted Answer

Cheap talk, or pre-play communication, may be illegal under anti-trust laws, and even if it is not illegal, it may lack credibility if there is an incentive for one or more players to lie. Therefore, not all games with multiple Nash equilibria can be solved with pre-play communication.

Not All Games with Two or More Nash Equilibria Can