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Network Heterogeneity and Value of Information

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  • Kota Murayama

Abstract

This paper studies how payoff heterogeneity affects the value of information in beauty contest games. I show that public information is detrimental to welfare if and only if agents' Katz-Bonacich centralities exhibit specific forms of heterogeneity, stemming from the network of coordination motives. A key insight is that agents may value the commonality of information so differently that some are harmed by their neighbors knowing what others know. Leveraging this insight, I also show that when the commonality of information is endogenously determined through information sharing, the equilibrium degree of information sharing can be inefficiently low, even without sharing costs.

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  • Kota Murayama, 2025. "Network Heterogeneity and Value of Information," Papers 2506.17660, arXiv.org, revised Jun 2025.
    • Handle: RePEc:arx:papers:2506.17660
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    References listed on IDEAS

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