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Competitive information disclosure in random search markets

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  • He, Wei
  • Li, Jiangtao

Abstract

We analyze the role of competition in information provision in random search markets. Multiple symmetric senders compete for the receiver's investment by disclosing information about their respective project qualities, and the receiver conducts random search to learn about the qualities of the projects. We show that in any symmetric pure strategy Nash equilibrium, each sender chooses a strategy with the lowest possible reservation value. There is no active search, and the receiver does not benefit from the competition of the senders.

Suggested Citation

  • He, Wei & Li, Jiangtao, 2023. "Competitive information disclosure in random search markets," Games and Economic Behavior, Elsevier, vol. 140(C), pages 132-153.
    • Handle: RePEc:eee:gamebe:v:140:y:2023:i:c:p:132-153
    DOI: 10.1016/j.geb.2023.03.004
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    References listed on IDEAS

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    1. Au, Pak Hung & Kawai, Keiichi, 2020. "Competitive information disclosure by multiple senders," Games and Economic Behavior, Elsevier, vol. 119(C), pages 56-78.
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    6. Mark Whitmeyer, 2020. "Persuasion Produces the (Diamond) Paradox," Papers 2011.13900, arXiv.org, revised Apr 2021.
    7. Raphael Boleslavsky & Christopher Cotton, 2018. "Limited capacity in project selection: competition through evidence production," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 65(2), pages 385-421, March.
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    10. Simon Board & Jay Lu, 2018. "Competitive Information Disclosure in Search Markets," Journal of Political Economy, University of Chicago Press, vol. 126(5), pages 1965-2010.
    11. Pak Hung Au & Mark Whitmeyer, 2023. "Attraction versus Persuasion: Information Provision in Search Markets," Journal of Political Economy, University of Chicago Press, vol. 131(1), pages 202-245.
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    Cited by:

    1. Teddy Mekonnen & Bobak Pakzad-Hurson, 2024. "Competition, Persuasion, and Search," Papers 2411.11183, arXiv.org, revised Dec 2024.

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