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On the signal realization set in contracting with information disclosure

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  • Terstiege, Stefan

Abstract

I consider contracting with information disclosure in the sense of Bayesian persuasion. A result by Kamenica and Gentzkow (2011) implies that if the principal contracts with a single, uninformed agent, the signal realization set can be restricted to the type set. I show that, otherwise, having additional signal realizations can be advantageous.

Suggested Citation

  • Terstiege, Stefan, 2018. "On the signal realization set in contracting with information disclosure," Economics Letters, Elsevier, vol. 163(C), pages 83-86.
    • Handle: RePEc:eee:ecolet:v:163:y:2018:i:c:p:83-86
    DOI: 10.1016/j.econlet.2017.12.014
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    References listed on IDEAS

    as
    1. Hao Li & Xianwen Shi, 2017. "Discriminatory Information Disclosure," American Economic Review, American Economic Association, vol. 107(11), pages 3363-3385, November.
    2. Dirk Bergemann & Stephen Morris, 2019. "Information Design: A Unified Perspective," Journal of Economic Literature, American Economic Association, vol. 57(1), pages 44-95, March.
    3. Bester, Helmut & Strausz, Roland, 2000. "Imperfect commitment and the revelation principle: the multi-agent case," Economics Letters, Elsevier, vol. 69(2), pages 165-171, November.
    4. Bergemann, Dirk & Pesendorfer, Martin, 2007. "Information structures in optimal auctions," Journal of Economic Theory, Elsevier, vol. 137(1), pages 580-609, November.
    5. Emir Kamenica & Matthew Gentzkow, 2011. "Bayesian Persuasion," American Economic Review, American Economic Association, vol. 101(6), pages 2590-2615, October.
    6. Lewis, Tracy R & Sappington, David E M, 1994. "Supplying Information to Facilitate Price Discrimination," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 35(2), pages 309-327, May.
    7. Myerson, Roger B, 1986. "Multistage Games with Communication," Econometrica, Econometric Society, vol. 54(2), pages 323-358, March.
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    Cited by:

    1. Rodivilov, Alexander, 2021. "A note on robust procurement contracts," Economics Letters, Elsevier, vol. 201(C).

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    More about this item

    Keywords

    Optimal contracts; Information disclosure; Bayesian persuasion;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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