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- W2906135839 abstract "I study the role of communication and commitment between an informed and an uninformed agent. The two agents contribute to a joint project such that (i) the agents’ actions are substitutable, and (ii) the actions are constrained. In the absence of commitment and when decision-making is simultaneous, there is full information revelation as long as constraints are not binding. The presence of binding constraints results in only partial revelation of information in equilibrium. The most informative equilibrium is strictly pareto dominant. When decisions are sequential, information revealed is unchanged but the actions of the agents change, resulting in higher welfare. Finally, I characterize the ex ante optimal commitment mechanism for the uninformed agent. Providing greater commitment power strictly raises welfare of both agents and leads to greater overall efficiency." @default.
- W2906135839 created "2019-01-01" @default.
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- W2906135839 date "2018-05-09" @default.
- W2906135839 modified "2023-09-25" @default.
- W2906135839 title "Communication and Commitment with Constraints" @default.
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