Articles

Strategic information exchange

D. ROSENBERG, E. SOLAN, N. VIEILLE

Games and Economic Behavior

novembre 2013, vol. 82, pp.444-467

Départements : Economie et Sciences de la décision, GREGHEC (CNRS)

Mots clés : Repeated games, Incomplete information on both sides, Information externalities, Folk Theorem, Equilibrium

http://ssrn.com/abstract=2344666


We analyze a toy class of two-player repeated games with two-sided incomplete information. In our model, two players are facing independent decision problems and each of them holds information that is potentially valuable to the other player. We study to what extent, and how, information can be exchanged at equilibrium. We show that, provided one's initial information is valuable to the other player, equilibria exist at which an arbitrary amount of information is exchanged at an arbitrary high rate. The construction relies on an indefinite, reciprocated, exchange.


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