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Positive value of information in games

Author

Listed:
  • Marco Scarsini

    (GREGH - Groupement de Recherche et d'Etudes en Gestion à HEC - HEC Paris - Ecole des Hautes Etudes Commerciales - CNRS - Centre National de la Recherche Scientifique, Dipartimento di Scienze Economiche e Aziendali - LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma])

  • Bruno Bassan
  • Olivier Gossner

    (THEMA - Théorie économique, modélisation et applications - UCP - Université de Cergy Pontoise - Université Paris-Seine - CNRS - Centre National de la Recherche Scientifique)

  • Shmuel Zamir

    (CREST-LEI - Hebrew University)

Abstract
We exhibit a general class of interactive decision situations in which all the agents benefit from more information. This class includes as a special case the classical comparison of statistical experiments `a la Blackwell. More specifically, we consider pairs consisting of a game with incomplete information G and an information structure S such that the extended game (G,S) has a unique Pareto payoff profile u. We prove that u is a Nash payoff profile of (G,S), and that for any information structure T that is coarser than S, all Nash payoff profiles of (G,S) are dominated by u. We then prove that our condition is also necessary in the following sense: Given any convex compact polyhedron of payoff profiles, whose Pareto frontier is not a singleton, there exists an extended game (G,S) with that polyhedron as the convex hull of feasible payoffs, an information structure T coarser than S and a player i who strictly prefers a Nash equilibrium in (G,S) to any Nash equilibrium in (G,S).

Suggested Citation

  • Marco Scarsini & Bruno Bassan & Olivier Gossner & Shmuel Zamir, 2003. "Positive value of information in games," Post-Print hal-00539798, HAL.
    • Handle: RePEc:hal:journl:hal-00539798
    DOI: 10.1007/s001820300142
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    References listed on IDEAS

    as
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