IDEAS home Printed from https://ideas.repec.org/a/inm/oropre/v69y2021i1p148-163.html
   My bibliography  Save this article

Value of Information in Bayesian Routing Games

Author

Listed:
  • Manxi Wu

    (Institute for Data, Systems, and Society, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Saurabh Amin

    (Laboratory of Information and Decision Systems, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

  • Asuman E. Ozdaglar

    (Department of Electrical Engineering and Computer Science, Massachusetts Institute of Technology, Cambridge, Massachusetts 02139)

Abstract

We study a routing game in an environment with multiple heterogeneous information systems and an uncertain state that affects edge costs of a congested network. Each information system sends a noisy signal about the state to its subscribed traveler population. Travelers make route choices based on their private beliefs about the state and other populations’ signals. The question then arises, “How does the presence of asymmetric and incomplete information affect the travelers’ equilibrium route choices and costs?” We develop a systematic approach to characterize the equilibrium structure and determine the effect of population sizes on the relative value of information (i.e., difference in expected traveler costs) between any two populations. This effect can be evaluated using a population-specific size threshold. One population enjoys a strictly positive value of information in comparison with the other if and only if its size is below the corresponding threshold. We also consider the situation when travelers may choose an information system based on its value and characterize the set of equilibrium adoption rates delineating the sizes of subscribed traveler populations. The resulting routing strategies are such that all travelers face an identical expected cost and no traveler has the incentive to change subscriptions.

Suggested Citation

  • Manxi Wu & Saurabh Amin & Asuman E. Ozdaglar, 2021. "Value of Information in Bayesian Routing Games," Operations Research, INFORMS, vol. 69(1), pages 148-163, January.
    • Handle: RePEc:inm:oropre:v:69:y:2021:i:1:p:148-163
    DOI: 10.1287/opre.2020.1999
    as

    Download full text from publisher

    File URL: https://doi.org/10.1287/opre.2020.1999
    Download Restriction: no
    File URL: https://libkey.io/10.1287/opre.2020.1999?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Emir Kamenica & Matthew Gentzkow, 2011. "Bayesian Persuasion," American Economic Review, American Economic Association, vol. 101(6), pages 2590-2615, October.
    2. Lehrer, Ehud & Rosenberg, Dinah, 2006. "What restrictions do Bayesian games impose on the value of information?," Journal of Mathematical Economics, Elsevier, vol. 42(3), pages 343-357, June.
    3. Anton Kolotilin & Tymofiy Mylovanov & Andriy Zapechelnyuk & Ming Li, 2017. "Persuasion of a Privately Informed Receiver," Econometrica, Econometric Society, vol. 85(6), pages 1949-1964, November.
    4. Khan, Zaid & Amin, Saurabh, 2018. "Bottleneck model with heterogeneous information," Transportation Research Part B: Methodological, Elsevier, vol. 112(C), pages 157-190.
    5. Sandholm, William H., 2001. "Potential Games with Continuous Player Sets," Journal of Economic Theory, Elsevier, vol. 97(1), pages 81-108, March.
    6. Milchtaich, Igal, 1996. "Congestion Games with Player-Specific Payoff Functions," Games and Economic Behavior, Elsevier, vol. 13(1), pages 111-124, March.
    7. Hirshleifer, Jack, 1971. "The Private and Social Value of Information and the Reward to Inventive Activity," American Economic Review, American Economic Association, vol. 61(4), pages 561-574, September.
    8. Daron Acemoglu & Asuman Ozdaglar, 2007. "Competition and Efficiency in Congested Markets," Mathematics of Operations Research, INFORMS, vol. 32(1), pages 1-31, February.
    9. Roughgarden, Tim & Tardos, Eva, 2004. "Bounding the inefficiency of equilibria in nonatomic congestion games," Games and Economic Behavior, Elsevier, vol. 47(2), pages 389-403, May.
    10. Neyman, Abraham, 1991. "The positive value of information," Games and Economic Behavior, Elsevier, vol. 3(3), pages 350-355, August.
    11. E. Nikolova & N. E. Stier-Moses, 2014. "A Mean-Risk Model for the Traffic Assignment Problem with Stochastic Travel Times," Operations Research, INFORMS, vol. 62(2), pages 366-382, April.
    12. José R. Correa & Andreas S. Schulz & Nicolás E. Stier-Moses, 2007. "Fast, Fair, and Efficient Flows in Networks," Operations Research, INFORMS, vol. 55(2), pages 215-225, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Furkan Sezer & Hossein Khazaei & Ceyhun Eksin, 2021. "Maximizing Social Welfare and Agreement via Information Design in Linear-Quadratic-Gaussian Games," Papers 2102.13047, arXiv.org, revised Feb 2023.
    2. Frederic Koessler & Marco Scarsini & Tristan Tomala, 2021. "Correlated Equilibria in Large Anonymous Bayesian Games," Papers 2107.06312, arXiv.org, revised Sep 2023.
    3. Furkan Sezer & Ceyhun Eksin, 2022. "Information Preferences of Individual Agents in Linear-Quadratic-Gaussian Network Games," Papers 2203.13056, arXiv.org.
    4. Macault, Emilien & Scarsini, Marco & Tomala, Tristan, 2022. "Social learning in nonatomic routing games," Games and Economic Behavior, Elsevier, vol. 132(C), pages 221-233.
    5. Manxi Wu & Saurabh Amin & Asuman Ozdaglar, 2021. "Multi-agent Bayesian Learning with Best Response Dynamics: Convergence and Stability," Papers 2109.00719, arXiv.org.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Dirk Bergemann & Stephen Morris, 2019. "Information Design: A Unified Perspective," Journal of Economic Literature, American Economic Association, vol. 57(1), pages 44-95, March.
    2. Florian Gauer & Christoph Kuzmics, 2020. "Cognitive Empathy In Conflict Situations," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1659-1678, November.
    3. Bernard de Meyer & Ehud Lehrer & Dinah Rosenberg, 2009. "Evaluating information in zero-sum games with incomplete information on both sides," Post-Print halshs-00390625, HAL.
    4. Gossner, Olivier, 2010. "Ability and knowledge," Games and Economic Behavior, Elsevier, vol. 69(1), pages 95-106, May.
    5. Kolotilin, Anton & Li, Hongyi, 2021. "Relational communication," Theoretical Economics, Econometric Society, vol. 16(4), November.
    6. Bernard De Meyer & Ehud Lehrer & Dinah Rosenberg, 2010. "Evaluating Information in Zero-Sum Games with Incomplete Information on Both Sides," Mathematics of Operations Research, INFORMS, vol. 35(4), pages 851-863, November.
    7. Bruce Carlin & Christopher Cotton & Raphael Boleslavsky, 2017. "Competing For Capital: Auditing And Credibility In Financial Reporting," Working Paper 1377, Economics Department, Queen's University.
    8. Rosar, Frank, 2017. "Test design under voluntary participation," Games and Economic Behavior, Elsevier, vol. 104(C), pages 632-655.
    9. Li, Fei & Song, Yangbo & Zhao, Mofei, 2023. "Global manipulation by local obfuscation," Journal of Economic Theory, Elsevier, vol. 207(C).
    10. Christian Ewerhart, 2020. "Ordinal potentials in smooth games," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 70(4), pages 1069-1100, November.
    11. Thomas Mariotti & Nikolaus Schweizer & Nora Szech & Jonas von Wangenheim, 2023. "Information Nudges and Self-Control," Management Science, INFORMS, vol. 69(4), pages 2182-2197, April.
    12. Eduardo Perez‐Richet & Vasiliki Skreta, 2022. "Test Design Under Falsification," Econometrica, Econometric Society, vol. 90(3), pages 1109-1142, May.
    13. Lyu, Chen, 2023. "Information design for selling search goods and the effect of competition," Journal of Economic Theory, Elsevier, vol. 213(C).
    14. Hideo Konishi, 2004. "Uniqueness of User Equilibrium in Transportation Networks with Heterogeneous Commuters," Transportation Science, INFORMS, vol. 38(3), pages 315-330, August.
    15. Goldstein, Itay & Leitner, Yaron, 2018. "Stress tests and information disclosure," Journal of Economic Theory, Elsevier, vol. 177(C), pages 34-69.
    16. Pham, Hien, 2023. "How Information Design Shapes Optimal Selling Mechanisms," MPRA Paper 120989, University Library of Munich, Germany, revised 06 Mar 2024.
    17. Macault, Emilien & Scarsini, Marco & Tomala, Tristan, 2022. "Social learning in nonatomic routing games," Games and Economic Behavior, Elsevier, vol. 132(C), pages 221-233.
    18. Garcia, Daniel & Tsur, Matan, 2021. "Information design in competitive insurance markets," Journal of Economic Theory, Elsevier, vol. 191(C).
    19. Daniel Garcia & Roee Teper & Matan Tsur, 2018. "Information Design in Insurance Markets: Selling Peaches in a Market for Lemons," CESifo Working Paper Series 6853, CESifo.
    20. repec:spo:wpecon:info:hdl:2441/31aa5v8jtp9p48jlhrq44psjoa is not listed on IDEAS
    21. Liu, Yixuan & Whinston, Andrew B., 2019. "Efficient real-time routing for autonomous vehicles through Bayes correlated equilibrium: An information design framework," Information Economics and Policy, Elsevier, vol. 47(C), pages 14-26.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:oropre:v:69:y:2021:i:1:p:148-163. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.