IDEAS home Printed from https://ideas.repec.org/p/pra/mprapa/33869.html
   My bibliography  Save this paper

Strategic information transmission: a mathematica tool for analysis

Author

Listed:
  • Dickhaut, John
  • Kaplan, Todd R
  • Mukherji, Arijit

Abstract

Economists and other applied researchers use game theory to study industrial organization, financial markets, and the theory of the firm. In an earlier article in the Mathematica Journal, [Dickhaut and Kaplan 1991] present a procedure for solving two-person games of complete information. In many applications, however, "asymmetric information" is a central issue. By asymmetric information, we mean that one party has access to information that the other party lacks. The branch of game theory that deals with this problem is known as "games of incomplete information"; the formal model is discussed in [Harsanyi 1967]. [Myerson 1991, Tirole 1989] et al, discuss the applications but do not focus on computational procedures. We provide, in this article, an application of Mathematica to games of incomplete information that should be of interest for two reasons: (i) as a basis for thinking about solutions to games of incomplete information, and (ii) as an approach to understanding the particular application presented here, namely, the effect of strategic information transmission in firms and markets.

Suggested Citation

  • Dickhaut, John & Kaplan, Todd R & Mukherji, Arijit, 1992. "Strategic information transmission: a mathematica tool for analysis," MPRA Paper 33869, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:33869
    as

    Download full text from publisher

    File URL: https://mpra.ub.uni-muenchen.de/33869/1/MPRA_paper_33869.pdf
    File Function: original version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Crawford, Vincent P & Sobel, Joel, 1982. "Strategic Information Transmission," Econometrica, Econometric Society, vol. 50(6), pages 1431-1451, November.
    2. Todd R. Kaplan & John Dickhaut, "undated". "A Program for Finding Nash Equilibria," Working papers _004, University of Minnesota, Department of Economics.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Péter Eso & Balázs Szentes, 2004. "The Price of Advice," Discussion Papers 1416, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    2. Persson, Petra, 2018. "Attention manipulation and information overload," Behavioural Public Policy, Cambridge University Press, vol. 2(1), pages 78-106, May.
    3. Johannes Abeler & Armin Falk & Fabian Kosse, 2021. "Malleability of Preferences for Honesty," CESifo Working Paper Series 9033, CESifo.
    4. Thomas de Haan & Theo Offerman & Randolph Sloof, 2015. "Money Talks? An Experimental Investigation Of Cheap Talk And Burned Money," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 56(4), pages 1385-1426, November.
    5. Tim Besley & Rohini Pande, 1998. "Read my lips: the political economy of information transmission," IFS Working Papers W98/13, Institute for Fiscal Studies.
    6. Eduardo Perez-Richet, 2014. "Interim Bayesian Persuasion: First Steps," American Economic Review, American Economic Association, vol. 104(5), pages 469-474, May.
    7. Vera Popva, 2010. "What renders financial advisors less treacherous? - On commissions and reciprocity -," Jena Economics Research Papers 2010-036, Friedrich-Schiller-University Jena.
    8. Shuo Liu & Dimitri Migrow, 2019. "Designing organizations in volatile markets," ECON - Working Papers 319, Department of Economics - University of Zurich.
    9. Francisco Silva, 2016. "Should the Government Provide Public Goods if it Cannot Commit?," Documentos de Trabajo 477, Instituto de Economia. Pontificia Universidad Católica de Chile..
    10. Fleckinger, Pierre, 2008. "Bayesian improvement of the phantom voters rule: An example of dichotomic communication," Mathematical Social Sciences, Elsevier, vol. 55(1), pages 1-13, January.
    11. Gehrig, Thomas & Güth, Werner & Leví0nský, René & Popova, Vera, 2010. "On the evolution of professional consulting," Journal of Economic Behavior & Organization, Elsevier, vol. 76(1), pages 113-126, October.
    12. Lagunoff, Roger, 2006. "Credible communication in dynastic government," Journal of Public Economics, Elsevier, vol. 90(1-2), pages 59-86, January.
    13. Pedro M. Gardete & Liang Guo, 2021. "Prepurchase Information Acquisition and Credible Advertising," Management Science, INFORMS, vol. 67(3), pages 1696-1717, March.
    14. T. Tony Ke & Jiwoong Shin & Jungju Yu, 2023. "A Model of Product Portfolio Design: Guiding Consumer Search Through Brand Positioning," Marketing Science, INFORMS, vol. 42(6), pages 1101-1124, November.
    15. Frédéric Koessler & Françoise Forges, 2008. "Multistage Communication With And Without Verifiable Types," International Game Theory Review (IGTR), World Scientific Publishing Co. Pte. Ltd., vol. 10(02), pages 145-164.
    16. Andonie, Costel & Kuzmics, Christoph, 2012. "Pre-election polls as strategic coordination devices," Journal of Economic Behavior & Organization, Elsevier, vol. 84(2), pages 681-700.
    17. Iván Major, 2006. "Why do (or do not) banks share customer information? A comparison of mature private credit markets and markets in transition," CERS-IE WORKING PAPERS 0603, Institute of Economics, Centre for Economic and Regional Studies, revised 24 Apr 2006.
    18. Alp Atakan & Mehmet Ekmekci & Ludovic Renou, 2021. "Cross-verification and Persuasive Cheap Talk," Papers 2102.13562, arXiv.org, revised Apr 2021.
    19. Suehyun Kwon, 2018. "Selling Complementary Goods: Information and Products," CESifo Working Paper Series 7394, CESifo.
    20. Kimmo Eriksson & Brent Simpson, 2007. "Deception and price in a market with asymmetric information," Judgment and Decision Making, Society for Judgment and Decision Making, vol. 2, pages 23-28, February.

    More about this item

    Keywords

    Mathematica; Strategic Information Transmission; Crawford Sobel Model;
    All these keywords.

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pra:mprapa:33869. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Joachim Winter (email available below). General contact details of provider: https://edirc.repec.org/data/vfmunde.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.