Achieving Cooperation under Privacy Concerns

Wioletta Dziuda and Ronen Gradwohl

Discussion Papers from Northwestern University, Center for Mathematical Studies in Economics and Management Science

Abstract: Two players choose whether to cooperate on a project. Each of them is endowed with some evidence, and if both possess a sufficient amount then cooperation is profitable. In order to facilitate cooperation the players reveal evidence to one another. However, some players are concerned about privacy, and so revelation of evidence that does not result in cooperation is costly. We show that in equilibrium evidence can be exchanged both incrementally and all at once, and identify conditions under which the different rates of evidence exchange are optimal.

Keywords: Cooperation; Privacy; Communication JEL Classification: D80 (search for similar items in EconPapers)
Date: 2013-11-05
New Economics Papers: this item is included in nep-gth and nep-mic
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Citations: View citations in EconPapers (1)

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Journal Article: Achieving Cooperation under Privacy Concerns (2015)
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