Abstract
We analyze the role of mediation to correct misperceptions in a two-player hypergame where a player mispercepts the other's subjective game and both can get more payoff if the misperception is dismissed. Two main findings obtained are as follows. First, if the players communicate each other directly (without using a mediator), the misperception won't be corrected. Second, if players communicate through a mediator, the misperception can be corrected. We also discuss their meaning and implications.
