Information Transmission in Revision Games

Yves Guéron

Yves Guéron, Assistant Professor, Department of Economics, Seoul National University, Seoul, Korea, Tel: +82-2-880-6377 ygueron@snu.ac.kr

JEL Classification: C70, C72, C73

Abstract

Revision games model a situation in which players can prepare their actions during a pre-play phase. We introduce one-sided incomplete information in two coordination games, one of common interest and one of opposing interest, and study how the pre-play phase affects coordination. We find that in the common interest game, the unique Bayesian equilibrium is such that the informed player will signal the state of the world through her prepared action, unless the pre-play phase is about to finish, in which case she seeks to coordinate with the other player. In the opposing interest game, the equilibrium is similar when the informed player is the one receiving less opportunity to revise her actions. When it is the uninformed player who receives less revision opportunities, we show that it is possible no information is revealed if both players are initially coordinated, but some information must be revealed if they are initially miscoordinated.

Keywords:

Revision games, Dynamic games, Imperfect monitoring, Pre-opening, Finite horizon, Equilibrium selection, Asynchronous moves

Acknowledgments

This work was supported by the National Research Foundation of Korea Grant funded by the Korean Government (NRF-2014S1A5A8017310).

References

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