We exhibit a general class of interactive decision situations in which all the agents benefit from more information. This class includes as a special case the classical comparison of statistical experiments `a la Blackwell. More specifically, we consider pairs consisting of a game with incomplete information G and an information structure S such that the extended game (G,S) has a unique Pareto payoff profile u. We prove that u is a Nash payoff profile of (G,S), and that for any information structure T that is coarser than S, all Nash payoff profiles of (G,S) are dominated by u. We then prove that our condition is also necessary in the following sense: Given any convex compact polyhedron of payoff profiles, whose Pareto frontier is not a singleton, there exists an extended game (G,S) with that polyhedron as the convex hull of feasible payoffs, an information structure T coarser than S and a player i who strictly prefers a Nash equilibrium in (G,S) to any Nash equilibrium in (G,S).
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Paper provided by Center for Rationality and Interactive Decision Theory, Hebrew University, Jerusalem in its series Discussion Paper Series with number
dp294.
Length: 19 pages Date of creation: Feb 2001 Date of revision:
Jul 2002 Publication status: Published in International Journal of Game Theory, 2003, vol. 32, pp. 17-31. Handle: RePEc:huj:dispap:dp294
References listed on IDEAS 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.:
Mertens, J.-F., 1986.
"Repeated games,"
CORE Discussion Papers
1986024, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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