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Strategic information exchange

Author

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  • Rosenberg, Dinah
  • Solan, Eilon
  • Vieille, Nicolas

Abstract

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 oneʼs 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.

Suggested Citation

  • Rosenberg, Dinah & Solan, Eilon & Vieille, Nicolas, 2013. "Strategic information exchange," Games and Economic Behavior, Elsevier, vol. 82(C), pages 444-467.
    • Handle: RePEc:eee:gamebe:v:82:y:2013:i:c:p:444-467
    DOI: 10.1016/j.geb.2013.07.010
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    Cited by:

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    More about this item

    Keywords

    Repeated games; Incomplete information on both sides; Information externalities; Folk Theorem; Equilibrium;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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