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Achieving Cooperation under Privacy Concerns

Author

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  • Wioletta Dziuda
  • Ronen Gradwohl

Abstract

Two players choose whether to cooperate on a project. Each of them is endowed with some evidence, and if both possess a sufficient amount, then cooperation is profitable. In order to facilitate cooperation, the players reveal evidence to one another. However, some players are concerned about privacy, and so revelation of evidence that does not result in cooperation is costly. We show that in equilibrium evidence can be exchanged both incrementally and all at once, and identify conditions under which the different rates of evidence exchange are optimal. (JEL C71, D83)

Suggested Citation

  • Wioletta Dziuda & Ronen Gradwohl, 2015. "Achieving Cooperation under Privacy Concerns," American Economic Journal: Microeconomics, American Economic Association, vol. 7(3), pages 142-173, August.
    • Handle: RePEc:aea:aejmic:v:7:y:2015:i:3:p:142-73
    Note: DOI: 10.1257/mic.20140056
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ganglmair, Bernhard & Holcomb, Alex & Myung, Noah, 2016. "Cutthroats or comrades: Information sharing among competing fund managers," MPRA Paper 71506, University Library of Munich, Germany.
    2. Bernhard Ganglmair & Emanuele Tarantino, 2014. "Conversation with secrets," RAND Journal of Economics, RAND Corporation, vol. 45(2), pages 273-302, June.
    3. Ronen Gradwohl, 2018. "Voting in the limelight," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 66(1), pages 65-103, July.
    4. Rivera Mora, Ernesto, 2024. "Mechanism design with belief-dependent preferences," Journal of Economic Theory, Elsevier, vol. 216(C).
    5. Ehud Lehrer & Dimitry Shaiderman, 2022. "Markovian Persuasion with Stochastic Revelations," Papers 2204.08659, arXiv.org, revised May 2022.
    6. Ehud Lehrer & Dimitry Shaiderman, 2021. "Markovian Persuasion," Papers 2111.14365, arXiv.org.
    7. Augenblick, Ned & Bodoh-Creed, Aaron, 2018. "To reveal or not to reveal: Privacy preferences and economic frictions," Games and Economic Behavior, Elsevier, vol. 110(C), pages 318-329.
    8. Honryo, Takakazu, 2018. "Dynamic persuasion," Journal of Economic Theory, Elsevier, vol. 178(C), pages 36-58.

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    More about this item

    JEL classification:

    • C71 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Cooperative Games
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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