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Voluntary information disclosure to Cournot oligopolists

Author

Listed:
  • Ghosh, Gagan
  • Liu, Heng

Abstract

This note studies information disclosure by a planner to firms engaging in a Cournot competition with uncertain demand. The planner can send verifiable, either public or private, messages to firms about the states of the world before they choose quantities but cannot ex ante commit to an information disclosure policy. We show that all equilibria induce the same outcome: firms fully learn the state. Using an example, we also show that without public messages, the commitment solution can be an equilibrium outcome.

Suggested Citation

  • Ghosh, Gagan & Liu, Heng, 2020. "Voluntary information disclosure to Cournot oligopolists," Economics Letters, Elsevier, vol. 197(C).
    • Handle: RePEc:eee:ecolet:v:197:y:2020:i:c:s016517652030375x
    DOI: 10.1016/j.econlet.2020.109615
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    References listed on IDEAS

    as
    1. Masahiro Okuno-Fujiwara & Andrew Postlewaite & Kotaro Suzumura, 1990. "Strategic Information Revelation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(1), pages 25-47.
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    3. Ina Taneva, 2019. "Information Design," American Economic Journal: Microeconomics, American Economic Association, vol. 11(4), pages 151-185, November.
    4. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-483, December.
    5. Kfir Eliaz & Roberto Serrano, 2014. "Sending information to interactive receivers playing a generalized prisoners’ dilemma," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(2), pages 245-267, May.
    6. Eliaz, Kfir & Forges, Françoise, 2015. "Information disclosure to Cournot duopolists," Economics Letters, Elsevier, vol. 126(C), pages 167-170.
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    8. Paul R. Milgrom, 1981. "Good News and Bad News: Representation Theorems and Applications," Bell Journal of Economics, The RAND Corporation, vol. 12(2), pages 380-391, Autumn.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Verifiable information disclosure; No commitment; Cournot competition;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D44 - Microeconomics - - Market Structure, Pricing, and Design - - - Auctions
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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