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Evidence Games : Truth and Commitment

Author

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  • Hart, Sergiu

    (Department of Economics, Institute of Mathematics, and Federmann Center for the Study of Rationality, The Hebrew University of Jerusalem.)

  • Kremer, Ilan

    (Department of Economics, Business School, and Federmann Center for the Study of Rationality, The Hebrew University of Jerusalem; Department of Economics, University of Warwick)

  • Perry, Motty

    (Federmann Center for the Study of Rationality, The Hebrew University of Jerusalem; Department of Economics, University of Warwick.)

Abstract

An evidence game is a strategic disclosure game in which an informed agent who has some pieces of verifiable evidence decides which ones to disclose to an uninformed principal who chooses a reward. The agent, regardless of his information, prefers the reward to be as high as possible. We compare the setup where the principal chooses the reward after the evidence is disclosed to the mechanism-design setup where he can commit in advance to a reward policy. The main result is that under natural conditions on the truth structure of the evidence, the two setups yield the same equilibrium outcome.

Suggested Citation

  • Hart, Sergiu & Kremer, Ilan & Perry, Motty, 2015. "Evidence Games : Truth and Commitment," The Warwick Economics Research Paper Series (TWERPS) 1091, University of Warwick, Department of Economics.
  • Handle: RePEc:wrk:warwec:1091
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    References listed on IDEAS

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    1. Grossman, Sanford J, 1981. "The Informational Role of Warranties and Private Disclosure about Product Quality," Journal of Law and Economics, University of Chicago Press, vol. 24(3), pages 461-483, December.
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    Citations

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    Cited by:

    1. Alessandro Ispano & Péter Vida, 2020. "Custodial Interrogations," THEMA Working Papers 2020-05, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
    2. Pierpaolo Battigalli & Pietro Tebaldi, 2019. "Interactive epistemology in simple dynamic games with a continuum of strategies," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 68(3), pages 737-763, October.
    3. Frenkel, Sivan & Guttman, Ilan & Kremer, Ilan, 2020. "The effect of exogenous information on voluntary disclosure and market quality," Journal of Financial Economics, Elsevier, vol. 138(1), pages 176-192.
    4. Cheng Li, 2020. "Centralized policymaking and informational lobbying," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 54(4), pages 527-557, April.
    5. Schopohl, Simon, 2019. "Full revelation under optional verification," Economics Letters, Elsevier, vol. 176(C), pages 14-16.
    6. Frédéric Koessler & Eduardo Perez-Richet, 2019. "Evidence reading mechanisms," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 53(3), pages 375-397, October.
    7. Matthias Lang, 2020. "Mechanism Design with Narratives," CESifo Working Paper Series 8502, CESifo.
    8. Sumit Goel & Wade Hann-Caruthers, 2020. "Project selection with partially verifiable information," Papers 2007.00907, arXiv.org.
    9. Winand Emons & Claude Fluet, 2019. "Strategic communication with reporting costs," Theory and Decision, Springer, vol. 87(3), pages 341-363, October.
    10. Wu, Jiemai, 2020. "Non-competing persuaders," European Economic Review, Elsevier, vol. 127(C).
    11. Shaofei Jiang, 2020. "Equilibrium Refinement in Finite Evidence Games," Papers 2007.06403, arXiv.org.
    12. Bhattacharya, Sourav & Goltsman, Maria & Mukherjee, Arijit, 2018. "On the optimality of diverse expert panels in persuasion games," Games and Economic Behavior, Elsevier, vol. 107(C), pages 345-363.
    13. Shaofei Jiang, 2019. "Disclosure Games with Large Evidence Spaces," Papers 1910.13633, arXiv.org, revised Dec 2020.

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    More about this item

    JEL classification:

    • C72 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Noncooperative Games
    • D82 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Asymmetric and Private Information; Mechanism Design
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
    • K41 - Law and Economics - - Legal Procedure, the Legal System, and Illegal Behavior - - - Litigation Process

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