Strategic Communication Networks
AbstractWe consider situations in which individuals would like to choose an action which is close to that of others, as well as close to a state of nature, with the ideal proximity to the state varying across agents. Before this coordination game is played, a cheap-talk communication stage is offered to the individuals who decide to whom they reveal their private information about the state. The information transmission occurring in the communication stage is characterized by a strategic communication network. We provide an explicit link between players' preferences and the equilibrium strategic communication networks. A key feature of our equilibrium characterization is that whether communication takes place between two agents not only depends on the conflict of interest between these agents, but also on the number and preferences of the other agents with whom they communicate. Apart from some specific cases, the equilibrium communication networks are quite complex despite our simple one-dimensional description of preference heterogeneity. In general, strategic communication networks cannot be completely Pareto-ranked, but expected social welfare always increases as the communication network expands.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by HAL in its series Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) with number halshs-00367692.
Date of creation: Feb 2009
Date of revision:
Note: View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00367692
Contact details of provider:
Web page: http://hal.archives-ouvertes.fr/
Cheap talk ; coordination ; incomplete information ; networks;
Other versions of this item:
- Jeanne Hagenbach & Frédéric Koessler, 2008. "Strategic communication networks," PSE Working Papers halshs-00586847, HAL.
- Jeanne Hagenbach & Frédéric Koessler, 2009. "Strategic communication networks," Documents de travail du Centre d'Economie de la Sorbonne 09005, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
- 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, and Information
- D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-03-22 (All new papers)
- NEP-CSE-2009-03-22 (Economics of Strategic Management)
- NEP-CTA-2009-03-22 (Contract Theory & Applications)
- NEP-GTH-2009-03-22 (Game Theory)
- NEP-ICT-2009-03-22 (Information & Communication Technologies)
- NEP-NET-2009-03-22 (Network Economics)
- NEP-SOC-2009-03-22 (Social Norms & Social Capital)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Okuno-Fujiwara, Masahiro & Postlewaite, Andrew & Suzumura, Kotaro, 1990. "Strategic Information Revelation," Review of Economic Studies, Wiley Blackwell, vol. 57(1), pages 25-47, January.
- Van Zandt, Timothy & Vives, Xavier, 2007.
"Monotone equilibria in Bayesian games of strategic complementarities,"
Journal of Economic Theory,
Elsevier, vol. 134(1), pages 339-360, May.
- Van Zandt, Timothy & Vives, Xavier, 2003. "Monotone Equilibria in Bayesian Games of Strategic Complementarities," CEPR Discussion Papers 4103, C.E.P.R. Discussion Papers.
- Antoni Calvó-Armengol & Joan de Martí, 2007. "Communication Networks: Knowledge and Decisions," American Economic Review, American Economic Association, vol. 97(2), pages 86-91, May.
- Maria Goltsman & Gregory Pavlov, 2008.
"How to Talk to Multiple Audiences,"
UWO Department of Economics Working Papers
20081, University of Western Ontario, Department of Economics.
- Daron Acemoglu & Kostas Bimpikis & Asuman E, Ozdaglar, 2010.
"Dynamics of Information Exchange in Endogenous Social Networks,"
Levine's Working Paper Archive
661465000000000216, David K. Levine.
- Bimpikis, Kostas & Ozdaglar, Asuman & Acemoglu, Daron, 0. "Dynamics of information exchange in endogenous social networks," Theoretical Economics, Econometric Society.
- Daron Acemoglu & Kostas Bimpikis & Asuman Ozdaglar, 2010. "Dynamics of Information Exchange in Endogenous Social Networks," NBER Working Papers 16410, National Bureau of Economic Research, Inc.
- Daron Acemoglu & Asuman E. Ozdaglar, 2010.
"Opinion Dynamics and Learning in Social Networks,"
Levine's Working Paper Archive
661465000000000222, David K. Levine.
- Choi, Syngjoo & Lee, Jihong, 2009. "Communication, Coordination and Networks," MPRA Paper 19055, University Library of Munich, Germany.
- Salvatore Piccolo & Emanuele Tarantino, 2011. "Managerial Compensations and Information Sharing under Moral Hazard: Is Transparency Good?," CSEF Working Papers 294, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
- Acemoglu, Daron & Ozdaglar, Asuman & ParandehGheibi, Ali, 2010. "Spread of (mis)information in social networks," Games and Economic Behavior, Elsevier, vol. 70(2), pages 194-227, November.
- Daron Acemoglu & Asuman Ozdaglar, 2011. "Opinion Dynamics and Learning in Social Networks," International Review of Economics, Springer, vol. 1(1), pages 3-49, March.
- Jeanne Hagenbach & Frédéric Koessler, 2011. "Full Disclosure in Decentralized Organizations," PSE Working Papers halshs-00652279, HAL.
- Andrea Galeotti & Christian Ghiglino & Francesco Squintani, 2009. "Strategic Information Transmission in Networks," Economics Discussion Papers 668, University of Essex, Department of Economics.
- Salvatore Piccolo, 2011. "Communicating Vertical Hierarchies: the Adverse Selection Case," CSEF Working Papers 273, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (CCSD).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.