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Dynamic information disclosure
Author(s) -
Au Pak Hung
Publication year - 2015
Publication title -
the rand journal of economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 3.687
H-Index - 108
eISSN - 1756-2171
pISSN - 0741-6261
DOI - 10.1111/1756-2171.12111
Subject(s) - communication source , commit , computer science , full disclosure , limit (mathematics) , interval (graph theory) , markov chain , computer security , mathematics , computer network , mathematical analysis , combinatorics , database , machine learning
We study dynamic information disclosure by a sender attempting to persuade a partially informed receiver to take an action. We consider vertical and horizontal information. With vertical information, an optimal disclosure plan is static. If the sender cannot commit to the disclosure plan, there exists a simple Markov equilibrium with sequential disclosure. Shrinking the time interval to zero gives rise to full disclosure almost instantly. With horizontal information, the sender often benefits from sequential disclosure. Assuming partial commitment and a special receiver‐type space, a Markov equilibrium exists and almost instant full disclosure arises in the limit.