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In this paper, we generalize the notion of a communication equilibrium (Forges 1986, Myerson 1986) of a game with incomplete information by introducing two new types of correlation device, namely extended and Bayesian devices. These new devices explicitly model the `thinking process' of the...
Persistent link: https://www.econbiz.de/10008823244
We introduce a novel framework to study targeted policy interventions. Agents: 1) differ both in their likelihood of and loss from interaction, 2) exert negative externalities through interaction, and 3) can exert costly effort to isolate. Additionally, a planner can select a subset of agents to...
Persistent link: https://www.econbiz.de/10013324417
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