Information Transmission in Nested Sender-Receiver Games

Ying Chen and Sidartha Gordon ()

Working Papers from HAL

Abstract: We introduce a "nestedness" relation for a general class of sender-receiver games and compare equilibrium properties, in particular the amount of information transmitted, across games that are nested. Roughly, game is nested in game if the players's optimal actions are closer in game. We show that under some conditions, more information is transmitted in the nested game in the sense that the receiver's expected equilibrium payoff is higher. The results generalize the comparative statics and welfare comparisons with respect to preferences in the seminal paper of Crawford and Sobel (1982). We also derive new results with respect to changes in priors in addition to changes in preferences. We illustrate the usefulness of the results in three applications: (i) delegation to an intermediary with a different prior, the choice between centralization and delegation, and two-way communication with an informed principal.

Keywords: sender-receiver games; information transmission; nestedness; inter- mediary; delegation; informed principal. (search for similar items in EconPapers)
Date: 2014-04
New Economics Papers: this item is included in nep-gth, nep-hpe and nep-mic
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-00973071v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://sciencespo.hal.science/hal-00973071v1/document (application/pdf)

Related works:
Journal Article: Information transmission in nested sender–receiver games (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:wpaper:hal-00973071

Access Statistics for this paper

More papers in Working Papers from HAL
Bibliographic data for series maintained by CCSD ().