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Information design in multi-stage games

Author

Listed:
  • Miltiadis Makris

    (Department of Economics, University of Southampton)

  • Ludovic Renou

    (Queen Mary University of London)

Abstract

We consider multi-stage games, where at each stage, players receive private signals about past and current states, past actions and past signals, and choose actions. We fully characterise the distributions over actions, states, and signals that obtain in any (sequential) communication equilibrium of any expansion of multi-stage games, i.e., when players can receive additional signals about past and current states, past actions, and past and current signals (including the additional past signals). We interpret our results as revelation principles for information design problems. We apply our characterisation to bilateral bargaining problems.

Suggested Citation

  • Miltiadis Makris & Ludovic Renou, 2018. "Information design in multi-stage games," Working Papers 861, Queen Mary University of London, School of Economics and Finance.
  • Handle: RePEc:qmw:qmwecw:861
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    References listed on IDEAS

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    Cited by:

    1. Koessler, Frederic & Laclau, Marie & Renault, Jérôme & Tomala, Tristan, 2022. "Long information design," Theoretical Economics, Econometric Society, vol. 17(2), May.
    2. Koessler, Frederic & Laclau, Marie & Renault, Jérôme & Tomala, Tristan, 2022. "Long information design," Theoretical Economics, Econometric Society, vol. 17(2), May.
    3. Catonini, Emiliano & Penta, Antonio, 2022. "Backward Induction Reasoning beyond Backward Induction," TSE Working Papers 22-1298, Toulouse School of Economics (TSE).
    4. Emiliano Catonini & Antonio Penta, 2022. "Backward Induction Reasoning beyond Backward Induction," Working Papers 1315, Barcelona School of Economics.
    5. Hiroto Sato, 2023. "Robust implementation in sequential information design under supermodular payoffs and objective," Review of Economic Design, Springer;Society for Economic Design, vol. 27(2), pages 269-285, June.
    6. Emiliano Cantonini & Antonio Penta, 2022. "Backward induction reasoning beyond backward induction," Economics Working Papers 1815, Department of Economics and Business, Universitat Pompeu Fabra.

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    More about this item

    Keywords

    multi-stage games; information design; communication equilibrium; sequential communication equilibrium; information structures; Bayes correlated equilibrium; revelation principle;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design

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