EconPapers    
Economics at your fingertips  
 

Quid pro Quo: Friendly Information Exchange between Rivals

Andreas Blume and In-Uck Park

Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK

Abstract: We show that information exchange via disclosure is possible in equilibrium even if only one party benefits from the information ex post. The incentive to disclose results either from an expectation of disclosure being reciprocated- the quid pro quo motive - or from the possibility of learning from the rival's failure to act in response to a disclosure - the screening motive. Alternating and gradual disclosures are generally indispensable for information exchange and the number of disclosure rounds grows without bound if the agents' initial information becomes sufficiently diffuse - in that sense, the less informed agents are the more they talk. Patient individuals can achieve efficiency by means of continuous alternating disclosures of limited amounts of information. This provides a rationale for protracted dialogues.

Date: 2020-11-19
New Economics Papers: this item is included in nep-mic
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.bristol.ac.uk/efm/media/workingpapers/w ... pdffiles/dp20733.pdf (application/pdf)

Related works:
Journal Article: Quid pro quo: friendly information exchange between rivals (2022) Downloads
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:bri:uobdis:20/733

Access Statistics for this paper

More papers in Bristol Economics Discussion Papers from School of Economics, University of Bristol, UK
Bibliographic data for series maintained by Vicky Jackson ().

 
Page updated 2025-03-30
Handle: RePEc:bri:uobdis:20/733