Endogenous Private Information Structures
Many models in the economics literature deal with strategic situations with privately informed agents. In those models the information structure is assumed to be exogenous and common knowledge. In many applications information gathering is one of the strategic options available to agents. We formally incorporate this option into the game and the information structure will arise endogenously. We ask whether models with exogenous information structures, and the results they provide, are robust with respect to this endogenization. We show that any Nash equilibrium of the game with information acquisition induces a Nash equilibrium in the corresponding game with an exogenous structure. The same is not always true when `Nash equilibrium' is replaced by `sequential equilibrium' but we provide sufficient conditions on the structure of the game for which this is true. Moreover, we characterize the (sequential) Nash equilibria of games with an exogenous information structure that can arise as a (sequential) Nash equilibrium of a game with endogenous information acquisition,
|Date of creation:||01 Aug 2000|
|Date of revision:|
|Contact details of provider:|| Phone: 1 212 998 3820|
Fax: 1 212 995 4487
Web page: http://www.econometricsociety.org/pastmeetings.asp
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Milgrom, Paul R, 1981. "Rational Expectations, Information Acquisition, and Competitive Bidding," Econometrica, Econometric Society, vol. 49(4), pages 921-43, June.
- van Damme, E.E.C., 1989.
"Stable equilibria and forward induction,"
Other publications TiSEM
bd598a8f-f017-4cab-a9ed-8, Tilburg University, School of Economics and Management.
- Esther Hauk & Sjaak Hurkens, 2001.
"Secret information acquisition in Cournot markets,"
Springer, vol. 18(3), pages 661-681.
- Hurkens, Sjaak & Vulkan, Nir, 2001.
"Information acquisition and entry,"
Journal of Economic Behavior & Organization,
Elsevier, vol. 44(4), pages 467-479, April.
- Crémer, Jacques & Khalil, Fahad, 1991.
"Gathering Information before Signing a Contract,"
IDEI Working Papers
5, Institut d'Économie Industrielle (IDEI), Toulouse.
- Cremer, J. & Khalil, F., 1991. "Gathering Information Before Signing a Contract," Discussion Papers in Economics at the University of Washington 91-16, Department of Economics at the University of Washington.
- Cremer, J. & Khalil, F., 1991. "Gathering Information Before Signing a Contract," Working Papers 91-16, University of Washington, Department of Economics.
- Jean-Pierre Ponssard, 1979. "The Strategic Role of Information on the Demand Function in an Oligopolistic Market," Management Science, INFORMS, vol. 25(3), pages 243-250, March.
- Nicola Persico, 1997.
"Information Acquisition in Auctions,"
UCLA Economics Working Papers
762, UCLA Department of Economics.
- Grossman, Sanford J & Stiglitz, Joseph E, 1980.
"On the Impossibility of Informationally Efficient Markets,"
American Economic Review,
American Economic Association, vol. 70(3), pages 393-408, June.
- Sanford J Grossman & Joseph E Stiglitz, 1997. "On the Impossibility of Informationally Efficient Markets," Levine's Working Paper Archive 1908, David K. Levine.
- Anke Kessler, 1998. "The Value of Ignorance," RAND Journal of Economics, The RAND Corporation, vol. 29(2), pages 339-354, Summer.
- Sjaak Hurkens & Nir Vulkan, 1997.
"Free entry does not imply zero profits,"
Economics Working Papers
268, Department of Economics and Business, Universitat Pompeu Fabra.
- Cremer, Jacques & Khalil, Fahad, 1994. "Gathering information before the contract is offered: The case with two states of nature," European Economic Review, Elsevier, vol. 38(3-4), pages 675-682, April.
- Neyman, Abraham, 1991. "The positive value of information," Games and Economic Behavior, Elsevier, vol. 3(3), pages 350-355, August.
- Khalil, F & Rochet, J-C, 1997.
"Strategic Information Gathering Before a Contract is Offered,"
97-15, University of Washington, Department of Economics.
- Cremer, Jacques & Khalil, Fahad & Rochet, Jean-Charles, 1998. "Strategic Information Gathering before a Contract Is Offered," Journal of Economic Theory, Elsevier, vol. 81(1), pages 163-200, July.
- Khalil, F & Rochet, J-C, 1997. "Strategic Information Gathering Before a Contract is Offered," Discussion Papers in Economics at the University of Washington 97-15, Department of Economics at the University of Washington.
- Cremer, J. & Khalil, F & Rochet, J.-C., 1996. "Strategic Information Gathering Before a Contract is Offered," Papers 976.425, Toulouse - GREMAQ.
- Cremer, J. & Khalil, F. & Rochet, J.-C., 1997. "Strategic information gathering before a contract is offered," Discussion Paper Series In Economics And Econometrics 9708, Economics Division, School of Social Sciences, University of Southampton.
- Crémer, Jacques & Khalil, Fahad & Rochet, Jean-Charles, 1996. "Strategic Information Gathering Before a Contract Is Offered," IDEI Working Papers 61, Institut d'Économie Industrielle (IDEI), Toulouse.
- Li, Lode & McKelvey, Richard D. & Page, Talbot., 1985.
"Optimal Research for Cournot Oligopolists,"
563, California Institute of Technology, Division of the Humanities and Social Sciences.
- Tom K. Lee, 1982. "Resource Information Policy and Federal Resource Leasing," Bell Journal of Economics, The RAND Corporation, vol. 13(2), pages 561-568, Autumn.
- Vives, Xavier, 1988. "Aggregation of Information in Large Cournot Markets," Econometrica, Econometric Society, vol. 56(4), pages 851-76, July.
- Hwang Hae-shin, 1993. "Optimal Information Acquisition for Heterogenous Duopoly Firms," Journal of Economic Theory, Elsevier, vol. 59(2), pages 385-402, April.
- Hwang, Hae-shin, 1995. "Information Acquisition and Relative Efficiency of Competitive, Oligopoly and Monopoly Markets," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 36(2), pages 325-40, May.
When requesting a correction, please mention this item's handle: RePEc:ecm:wc2000:0613. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Christopher F. Baum)
If references are entirely missing, you can add them using this form.