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Asymmetric information allocation to avoid coordination failure

Author

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  • MORIYA, Fumitoshi
  • 森谷, 文利
  • YAMASHITA, Takuro
  • 山下, 拓朗

Abstract

This study addresses optimal information allocation in team production. We present a unique implementation problem of desirable effort levels and show that, under certain conditions, it is optimal to asymmetrically inform the agents even if they are ex ante symmetric. The main intuition is that the asymmetric information allocation is effective in avoiding "bad" equilibria, that is, equilibria with coordination failure. This analysis provides an explanation as to why informing agents asymmetrically might be beneficial in improving the agents' coordination behaviors.

Suggested Citation

  • MORIYA, Fumitoshi & 森谷, 文利 & YAMASHITA, Takuro & 山下, 拓朗, 2015. "Asymmetric information allocation to avoid coordination failure," Discussion paper series HIAS-E-18, Hitotsubashi Institute for Advanced Study, Hitotsubashi University.
    • Handle: RePEc:hit:hiasdp:hias-e-18
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    References listed on IDEAS

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    Cited by:

    1. Frédéric Koessler & Marie Laclau & Tristan Tomala, 2022. "Interactive Information Design," Mathematics of Operations Research, INFORMS, vol. 47(1), pages 153-175, February.
    2. Li, Fei & Song, Yangbo & Zhao, Mofei, 2023. "Global manipulation by local obfuscation," Journal of Economic Theory, Elsevier, vol. 207(C).
    3. Fumitoshi Moriya & Takuro Yamashita, 2020. "Asymmetric‐information allocation to avoid coordination failure," Journal of Economics & Management Strategy, Wiley Blackwell, vol. 29(1), pages 173-186, January.
    4. Elliot Lipnowski & Doron Ravid & Denis Shishkin, 2024. "Perfect Bayesian Persuasion," Papers 2402.06765, arXiv.org.
    5. Laura Doval & Alex Smolin, 2024. "Persuasion and Welfare," Journal of Political Economy, University of Chicago Press, vol. 132(7), pages 2451-2487.
    6. Smolin, Alex & Doval, Laura, 2021. "Information Payoffs: An Interim Perspective," TSE Working Papers 21-1247, Toulouse School of Economics (TSE).
    7. Hiroto Sato, 2023. "Robust implementation in sequential information design under supermodular payoffs and objective," Review of Economic Design, Springer;Society for Economic Design, vol. 27(2), pages 269-285, June.

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    More about this item

    Keywords

    Moral hazard; Unique implementation; Asymmetric information;
    All these keywords.

    JEL classification:

    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory
    • D23 - Microeconomics - - Production and Organizations - - - Organizational Behavior; Transaction Costs; Property Rights
    • D86 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Economics of Contract Law

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