Strategic Disclosure in Networks

Francesco Squintani
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Francesco Squintani: University of Warwick

The Warwick Economics Research Paper Series (TWERPS) from University of Warwick, Department of Economics

Abstract: This paper explores the intersection of two major research streams in economic theory : information transmission in networks and strategic communication. The model embeds Milgroms (1981) strategic disclosure game into the communication network framework of Jackson and Wolinsky (1996). I find that the uniquely optimal network is a line in which players are ordered by their bliss points. This ordered line is also pairwise-stable. This finding contrasts with previous results in network studies, which identify stars as the optimal and pairwise-stable networks when communication is non-strategic and subject to technological constraints. While stars are the most centralized minimally connected networks, the line is the most decentralized.

Date: 2024
New Economics Papers: this item is included in nep-gth, nep-mic and nep-net
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Persistent link: https://EconPapers.repec.org/RePEc:wrk:warwec:1520

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