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This paper studies a mechanism design model where the players and the designer are nodes in a communication network. We characterize the communication networks (directed graphs) for which, in any environment (utilities and beliefs), every incentive compatible social choice function is partially...
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We study the bilateral exchange of information in the context of linear quadratic games. An information structure is here represented by a non directed network, whose nodes are agents and whose links represent sharing agreements. We first study the equilibrium use of information in any given...
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Large, international banking groups have sought to centralise their cross-currency liquidity management: liquidity … emerging from global liquidity management depends on how these foreign exchange transactions settle. I analyse these risks in a … game of asymmetric information. The main result is that the transition from local to global liquidity management, and …
Persistent link: https://www.econbiz.de/10003884728
We show that every Bayesian game with purely atomic types has a measurable Bayesian equilibrium when the common knowledge relation is smooth. Conversely, for any common knowledge relation that is not smooth, there exists a type space that yields this common knowledge relation and payoffs such...
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