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Centralizing Information in Networks

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  • Hagenbach, Jeanne

Abstract

In the dynamic game we analyze, players are the members of a ?xed network. Everyone is initially endowed with an information item that he is the only player to hold. Players are offered a ?nite number of periods to centralize the initially dispersed items in the hands of any one member of the network. In every period, each agent strategically chooses whether or not to transmit the items he holds to his neighbors in the network. The sooner all the items are gathered by any individual, the better it is for the group of players as a whole. Besides, the agent who ?rst centralizes all the items is offered an additional reward that he keeps for himself. In this framework where information transmission is strategic and physically restricted, we provide a necessary and suffcient condition for a group to pool information items in every equilibrium. This condition is independent of the network structure. The architecture of links however affects the time needed before items are centralized in equilibrium.

Suggested Citation

  • Hagenbach, Jeanne, 2010. "Centralizing Information in Networks," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems 313, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
    • Handle: RePEc:trf:wpaper:313
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    References listed on IDEAS

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    1. Patrick Bolton & Mathias Dewatripont, 1994. "The Firm as a Communication Network," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 109(4), pages 809-839.
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    Cited by:

    1. Simon Schopohl, 2017. "Information Transmission in Hierarchies," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-01491930, HAL.
    2. Mauleon, Ana & Schopohl, Simon & Vannetelbosch, Vincent, 2020. "Competition for leadership in teams," Journal of Economic Behavior & Organization, Elsevier, vol. 177(C), pages 19-33.
    3. Simon Schopohl, 2017. "Information Transmission in Hierarchies," Post-Print halshs-01491930, HAL.
    4. Schopohl, Simon, 2017. "Information transmission in hierarchies," Center for Mathematical Economics Working Papers 570, Center for Mathematical Economics, Bielefeld University.
    5. Foerster, Manuel, 2019. "Dynamics of strategic information transmission in social networks," Theoretical Economics, Econometric Society, vol. 14(1), January.

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    More about this item

    Keywords

    communication network; communication dilemma; dynamic network game; strategic;
    All these keywords.

    JEL classification:

    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • L22 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Organization and Market Structure

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