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Information can wreck cooperation: A counterpoint to Kandori (1992)

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  • Kamada, Yuichiro
  • Kominers, Scott Duke

Abstract

We propose a simple model of repeated games with private monitoring and time-varying information structures. We then obtain an example demonstrating that the set of achievable equilibrium payoffs may shrink when players' information regarding opponents' information structures is increased.

Suggested Citation

  • Kamada, Yuichiro & Kominers, Scott Duke, 2010. "Information can wreck cooperation: A counterpoint to Kandori (1992)," Economics Letters, Elsevier, vol. 107(2), pages 112-114, May.
    • Handle: RePEc:eee:ecolet:v:107:y:2010:i:2:p:112-114
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    References listed on IDEAS

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    1. Michihiro Kandori & Ichiro Obara, 2006. "Less is more: an observability paradox in repeated games," International Journal of Game Theory, Springer;Game Theory Society, vol. 34(4), pages 475-493, November.
    2. Drew Fudenberg & David Levine & Eric Maskin, 2008. "The Folk Theorem With Imperfect Public Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 12, pages 231-273, World Scientific Publishing Co. Pte. Ltd..
    3. Drew Fudenberg & Eric Maskin, 2008. "The Folk Theorem In Repeated Games With Discounting Or With Incomplete Information," World Scientific Book Chapters, in: Drew Fudenberg & David K Levine (ed.), A Long-Run Collaboration On Long-Run Games, chapter 11, pages 209-230, World Scientific Publishing Co. Pte. Ltd..
    4. Sekiguchi, Tadashi, 1997. "Efficiency in Repeated Prisoner's Dilemma with Private Monitoring," Journal of Economic Theory, Elsevier, vol. 76(2), pages 345-361, October.
    5. Michihiro Kandori, 1992. "The Use of Information in Repeated Games with Imperfect Monitoring," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(3), pages 581-593.
    6. Abreu, Dilip & Pearce, David & Stacchetti, Ennio, 1990. "Toward a Theory of Discounted Repeated Games with Imperfect Monitoring," Econometrica, Econometric Society, vol. 58(5), pages 1041-1063, September.
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    Cited by:

    1. Richard Tol, 2011. "Regulating knowledge monopolies: the case of the IPCC," Climatic Change, Springer, vol. 108(4), pages 827-839, October.
    2. Osório, António (António Miguel), 2015. "Brownian Signals: Information Quality, Quantity and Timing in Repeated Games," Working Papers 2072/260962, Universitat Rovira i Virgili, Department of Economics.
    3. Osório, António (António Miguel), 2015. "Some Notes and Comments on the Efficient use of Information in Repeated Games with Poisson Signals," Working Papers 2072/249233, Universitat Rovira i Virgili, Department of Economics.
    4. António Osório, 2018. "Brownian Signals: Information Quality, Quantity and Timing in Repeated Games," Computational Economics, Springer;Society for Computational Economics, vol. 52(2), pages 387-404, August.
    5. Sharma, Priyanka, 2017. "Is more information always better? A case in credit markets," Journal of Economic Behavior & Organization, Elsevier, vol. 134(C), pages 269-283.
    6. Daehyun Kim, 2019. "Comparison of information structures in stochastic games with imperfect public monitoring," International Journal of Game Theory, Springer;Game Theory Society, vol. 48(1), pages 267-285, March.
    7. Osório, António (António Miguel), 2017. "Brownian Signals: Information Quality, Quantity and Timing in Repeated Games," Working Papers 2072/290761, Universitat Rovira i Virgili, Department of Economics.

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