Discussion paper

DP16959 Organized Information Transmission

We formalize the concepts of horizontal and vertical information transmission and
introduce two families of information structures, namely single-meeting schemes and
delegated hierarchies, that specialize along these dimensions. We characterize the
strategic outcomes that they implement in general finite incomplete information games
and illustrate the resulting linear programming approach in a linear network example.
We build on the characterizations to show that these families are unconstraine-doptimal
in binary-action games with strategic complementarities. Finally, we generalize
these families to multiple meetings and random hierarchies and characterize the
corresponding strategic outcomes.


Mathevet, L and I Taneva (2022), ‘DP16959 Organized Information Transmission‘, CEPR Discussion Paper No. 16959. CEPR Press, Paris & London. https://cepr.org/publications/dp16959