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Information Design by an Informed Designer

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  • Skreta, Vasiliki
  • Koessler, Frédéric

Abstract

A designer is privately informed about the state and chooses an information disclosure mechanism to influence the decisions of multiple agents playing a game. We define an intuitive class of incentive compatible information disclosure mechanisms which we coin interim optimal mechanisms. We prove that an interim optimal mechanism exists, and that it is an equilibrium outcome of the interim information design game. An ex-ante optimal mechanism may not be interim optimal, but it is whenever it is ex-post optimal. In addition, in leading settings in which action sets are binary, every ex-ante optimal mechanism is interim optimal. We relate interim optimal mechanisms to other solutions of informed principal problems.

Suggested Citation

  • Skreta, Vasiliki & Koessler, Frédéric, 2021. "Information Design by an Informed Designer," CEPR Discussion Papers 15709, C.E.P.R. Discussion Papers.
    • Handle: RePEc:cpr:ceprdp:15709
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    References listed on IDEAS

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    Cited by:

    1. Bara Kim & Seung Han Yoo, 2022. "Grand Mechanism and Population Uncertainty," Discussion Paper Series 2204, Institute of Economic Research, Korea University.
    2. Smolin, Alex & Doval, Laura, 2021. "Information Payoffs: An Interim Perspective," TSE Working Papers 21-1247, Toulouse School of Economics (TSE).
    3. Laura Doval & Alex Smolin, 2021. "Persuasion and Welfare," Papers 2109.03061, arXiv.org, revised Sep 2023.
    4. Emir Kamenica & Kyungmin Kim & Andriy Zapechelnyuk, 2021. "Bayesian persuasion and information design: perspectives and open issues," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 72(3), pages 701-704, October.

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    More about this item

    Keywords

    Interim information design; Bayesian persuasion; Informed principal; Neutral optimum; Strong-neologism proofness; Core mechanism; Verifiable types;
    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

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