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Econometrica
Article . 2024 . Peer-reviewed
License: CC BY
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zbMATH Open
Article . 2024
Data sources: zbMATH Open
SSRN Electronic Journal
Article . 2020 . Peer-reviewed
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Implementation Via Information Design in Binary-Action Supermodular Games

Implementation via information design in binary-action supermodular games
Authors: Morris, Stephen; Oyama, Daisuke; Takahashi, Satoru;

Implementation Via Information Design in Binary-Action Supermodular Games

Abstract

What outcomes can be implemented by the choice of an information structure in binary‐action supermodular games? An outcome is partially implementable if it satisfies obedience (Bergemann and Morris (2016)). We characterize when an outcome is smallest equilibrium implementable (induced by the smallest equilibrium). Smallest equilibrium implementation requires a stronger sequential obedience condition: there is a stochastic ordering of players under which players are prepared to switch to the high action even if they think only those before them will switch. We then characterize the optimal outcome induced by an information designer who prefers the high action to be played, but anticipates that the worst (hence smallest) equilibrium will be played. In a potential game, under convexity assumptions on the potential and the designer's objective, it is optimal to choose an outcome where actions are perfectly coordinated (all players choose the same action), with the high action profile played on the largest event where that action profile maximizes the average potential.

Keywords

information design, smallest equilibrium implementation, sequential obedience, supermodular game, Systems theory; control, potential game

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selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
17
Top 10%
Top 10%
Top 10%
hybrid