Persuasion games with higher-order uncertainty
AbstractIn persuasion games, it is well known that a perfectly revealing equilibrium may fail to exist when the decision maker is uncertain about the interested party\'s payoff-relevant information. However, by explicitly integrating higher order uncertainty into the information structure, this paper shows that a perfectly revealing equilibrium does exist when disclosures are not restrained to intervals of the payoff-relevant state space. On the contrary, when payoff-irrelevant disclosures are impossible, a perfectly revealing equilibrium fails to exist as long as there is a strictly positive probability that the decision maker does not know whether the interested party is informed or not. In this case, a partially revealing equilibrium and associated inferences are characterized.
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Bibliographic InfoArticle provided by Elsevier in its journal Journal of Economic Theory.
Volume (Year): 110 (2003)
Issue (Month): 2 (June)
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Web page: http://www.elsevier.com/locate/inca/622869
Other versions of this item:
- C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
- D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
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