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Information Design in Smooth Games

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  • Smolin, Alex
  • Yamashita, Takuro

Abstract

We study information design in games where players choose from a continuum of ac-tions and have continuously differentiable payoffs. We show that an information structure is optimal when the equilibrium it induces can also be implemented in a principal-agent contracting problem. Building on this result, we characterize optimal information struc-tures in symmetric linear-quadratic games. With common values, targeted disclosure is robustly optimal across all priors. With interdependent and normally distributed values, linear disclosure is uniquely optimal. We illustrate our findings with applications in venture capital, Bayesian polarization, and price competition.

Suggested Citation

  • Smolin, Alex & Yamashita, Takuro, 2025. "Information Design in Smooth Games," TSE Working Papers 25-1671, Toulouse School of Economics (TSE).
    • Handle: RePEc:tse:wpaper:130998
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    References listed on IDEAS

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    1. Myerson, Roger B, 1983. "Mechanism Design by an Informed Principal," Econometrica, Econometric Society, vol. 51(6), pages 1767-1797, November.
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    10. Emir Kamenica, 2019. "Bayesian Persuasion and Information Design," Annual Review of Economics, Annual Reviews, vol. 11(1), pages 249-272, August.
    11. Piotr Dworczak & Giorgio Martini, 2019. "The Simple Economics of Optimal Persuasion," Journal of Political Economy, University of Chicago Press, vol. 127(5), pages 1993-2048.
    12. Ina Taneva, 2019. "Information Design," American Economic Journal: Microeconomics, American Economic Association, vol. 11(4), pages 151-185, November.
    13. Dworczak, Piotr & Kolotilin, Anton, 2024. "The persuasion duality," Theoretical Economics, Econometric Society, vol. 19(4), November.
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    2. Anton Kolotilin & Roberto Corrao & Alexander Wolitzky, 2025. "Persuasion and Matching: Optimal Productive Transport," Journal of Political Economy, University of Chicago Press, vol. 133(4), pages 1334-1381.
    3. Masaki Miyashita & Takashi Ui, 2023. "LQG Information Design," Papers 2312.09479, arXiv.org, revised Aug 2025.

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