We study quadratic payoff common-value sequential-move aggregative games with signaling. Applications include Stackelberg quantity-setting, public good contribution, common resource, gas emission, and manufacturer-retailer games. Whereas efficient aggregation of information occurs in large Stackelberg markets, it does not occur in the four remaining large markets. If all agents share their information with their followers, expected welfare increases in the Stackelberg and supply chain games and it decreases in the remaining three games. Finally, we characterize the conditions for payoffs and welfare to increase with more precise private or public information. We also provide robustness checks when the values are private.
"Acquisition, Aggregation, and Sharing of Information in Sequential-Move Aggregative Games."
American Economic Journal: Microeconomics,
Game Theory and Bargaining Theory: General
Market Structure, Pricing, and Design: Oligopoly and Other Forms of Market Imperfection
Asymmetric and Private Information; Mechanism Design
Search; Learning; Information and Knowledge; Communication; Belief; Unawareness
Renewable Resources and Conservation: Demand and Supply; Prices
Climate; Natural Disasters and Their Management; Global Warming