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Information acquisition interactions in two-player quadratic games

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  • Antonio Jiménez-Martínez

Abstract

This paper considers two-player quadratic games to examine the relation between strategic interactions in actions and in information decisions. We analyze the role of external effects and of the relative intensities with which the players’ actions interact with the uncertain payoff-relevant parameter. We show that, under some conditions on the quadratic preferences, information choices become substitutes when actions are sufficiently complementary. When attention is restricted to beauty contest games, our results contrast qualitatively with the case studied by Hellwig and Veldkamp (Review of Economic Studies, 76(1)223–251, 2009 ), where the set of players is a continuum. Copyright Springer-Verlag Berlin Heidelberg 2014

Suggested Citation

  • Antonio Jiménez-Martínez, 2014. "Information acquisition interactions in two-player quadratic games," International Journal of Game Theory, Springer;Game Theory Society, vol. 43(2), pages 455-485, May.
    • Handle: RePEc:spr:jogath:v:43:y:2014:i:2:p:455-485
    DOI: 10.1007/s00182-013-0389-3
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    References listed on IDEAS

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    Cited by:

    1. Antonio Jimenez-Martinez, 2017. "On Information Aggregation and Interim Efficiency in Networks," Games, MDPI, vol. 8(1), pages 1-14, February.

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    More about this item

    Keywords

    Incomplete information; Information acquisition; Strategic complements; Strategic substitutes; Externalities; C72; D82; D83;
    All these keywords.

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • 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

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