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Robust implementation in sequential information design under supermodular payoffs and objective

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  • Hiroto Sato

    (University of Tokyo)

Abstract

This paper studies sequential information design (Doval and Ely in Econometrica 88:2575–2608, 2020) in which a designer can construct the extensive form along with the information structure. In this framework, I investigate robust implementations against adversarial equilibrium selection, when players and the designer have a supermodular payoff function with dominant states and an outside option. The main results show that the optimal partially implementable outcome is fully implementable in sequential information design, which essentially coincides with the optimal partially implementable outcome in static information design. For economic applications such as global game of regime change, this paper proposes a way to robustly achieve the desired outcome in static information design by providing the extensive form and the information structure.

Suggested Citation

  • 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.
    • Handle: RePEc:spr:reecde:v:27:y:2023:i:2:d:10.1007_s10058-022-00304-8
    DOI: 10.1007/s10058-022-00304-8
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    References listed on IDEAS

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