| Title: |
Location Choice and Information Transmission |
| Authors: |
Simon Loertscher; Jel-classification C |
| Contributors: |
The Pennsylvania State University CiteSeerX Archives |
| Source: |
http://simonloertscher.net/data/downloads/12120/IEC151012.pdf. |
| Publication Year: |
2012 |
| Collection: |
CiteSeerX |
| Subject Terms: |
Location Games; Sender Receiver Games; Information Transmission; Signaling; Political Economics; Refinements |
| Description: |
Consider a location game with two agents and one decision maker who is less well informed about her bliss point location than are the agents. Therefore, the lo-cations the agents choose can, in principle, transmit relevant information to the decision maker. This paper shows, however, that if the agents ’ information is pre-cise, no equilibrium exists that satisfies the Intuitive Criterion and in which all the information is transmitted. In contrast, given sufficiently noisy information, a refined equilibrium with full information transmission exists. Though the agents play separating strategies in this equilibrium, their location choices are the same with positive probability because their information is the same with positive prob-ability. A refined mixed strategy equilibrium in which some but not all information is transmitted always exists. However, with quadratic utility it is welfare inferior to the equilibrium in which both agents pool at the decision maker’s preferred location given the prior if information is sufficiently precise. |
| Document Type: |
text |
| File Description: |
application/pdf |
| Language: |
English |
| Relation: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.658.9171; http://simonloertscher.net/data/downloads/12120/IEC151012.pdf |
| Availability: |
http://citeseerx.ist.psu.edu/viewdoc/summary?doi=10.1.1.658.9171; http://simonloertscher.net/data/downloads/12120/IEC151012.pdf |
| Rights: |
Metadata may be used without restrictions as long as the oai identifier remains attached to it. |
| Accession Number: |
edsbas.93CCCF47 |
| Database: |
BASE |