Evidence Games: Truth and Commitment

Sergiu Hart, Ilan Kremer, Motty Perry
2017 The American Economic Review  
An evidence game is a strategic disclosure game in which an informed agent who has some pieces of verifiable evidence decides which ones to disclose to an uninformed principal who chooses a reward. The agent, regardless of his information, prefers the reward to be as high as possible. We compare the setup where the principal chooses the reward after the evidence is disclosed to the mechanism-design setup where he can commit in advance to a reward policy. The main result is that under natural
more » ... ditions on the truth structure of the evidence, the two setups yield the same equilibrium outcome.
doi:10.1257/aer.20150913 fatcat:pb4vjiiifrfnliomb3voppbubi