Article

Long information design

Frédéric Koessler, Marie Laclau, Jérôme Renault et Tristan Tomala

Résumé

We analyze information design games between two designers with opposite pref- erences and a single agent. Before the agent makes a decision, designers repeat- edly disclose public information about persistent state parameters. Disclosure continues until no designer wishes to reveal further information. We consider environments with general constraints on feasible information disclosure poli- cies. Our main results characterize equilibrium payoffs and strategies of this long information design game and compare them with the equilibrium outcomes of games where designers move only at a single predetermined period. When infor- mation disclosure policies are unconstrained, we show that at equilibrium in the long game, information is revealed right away in a single period; otherwise, the number of periods in which information is disclosed might be unbounded. As an application, we study a competition in product demonstration and show that more information is revealed if each designer could disclose information at a pre- determined period. The format that provides the buyer with most information is the sequential game where the last mover is the ex ante favorite seller.

Mots-clés

Bayesian persuasion; concavification; convexification; information; design; Mertens–Zamir solution; product demonstration, splitting games; statis-; tical experiments; stochastic games.;

Codes JEL

  • C72: Noncooperative Games
  • D82: Asymmetric and Private Information • Mechanism Design

Remplace

Frédéric Koessler, Marie Laclau, Jérôme Renault et Tristan Tomala, « Long information design », TSE Working Paper, n° 22-1341, juin 2022.

Référence

Frédéric Koessler, Marie Laclau, Jérôme Renault et Tristan Tomala, « Long information design », Theoretical Economics, vol. 17, n° 2, 2022, p. 883–927.

Publié dans

Theoretical Economics, vol. 17, n° 2, 2022, p. 883–927