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Strategic Evidence Disclosure in Networks and Equilibrium Discrimination

Author

Listed:
  • Leonie Baumann
  • Rohan Dutta

Abstract

A group of agents with ex ante independent and identically uncertain quality compete for a prize, awarded by a principal. Agents may possess evidence about the quality of those they share a social connection with (neighbors), and themselves. In one equilibrium, adversarial disclosure of evidence leads the principal to statistically discriminate between agents based on their number of neighbors (degree). We identify parameter values for which an agent's ex ante winning probability is monotone in degree. All equilibria that satisfy some robustness criteria lie between this adversarial disclosure equilibrium and a less informative one that features no snitching and no discrimination.

Suggested Citation

  • Leonie Baumann & Rohan Dutta, 2026. "Strategic Evidence Disclosure in Networks and Equilibrium Discrimination," American Economic Journal: Microeconomics, American Economic Association, vol. 18(2), pages 192-227, May.
  • Handle: RePEc:aea:aejmic:v:18:y:2026:i:2:p:192-227
    DOI: 10.1257/mic.20230285
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    More about this item

    JEL classification:

    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • D85 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Network Formation
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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