A designer commits to a signal distribution that is informative about a payoff-relevant state. Conditional upon the privately observed signals, agents take actions that affect their payoffs as well as those of the designer. We show how to derive the (designer) optimal information structure in static finite environments. We fully characterize it in a symmetric binary setting for a parameterized game. In this environment, conditionally independent private signals are never strictly optimal.
American Economic Journal: Microeconomics,
Positive Analysis of Policy Formulation and Implementation
Asymmetric and Private Information; Mechanism Design
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness