Information Design in Smooth Games

Alex Smolin and Takuro Yamashita

Papers from arXiv.org

Abstract: We study information design in games where players choose from a continuum of actions 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 structures 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.

Date: 2022-02, Revised 2025-07
New Economics Papers: this item is included in nep-com, nep-cta, nep-des, nep-gth and nep-mic
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Citations: View citations in EconPapers (2)

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Working Paper: Information Design in Smooth Games (2025)
Working Paper: Information Design in Smooth Games (2025)
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Persistent link: https://EconPapers.repec.org/RePEc:arx:papers:2202.10883

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