Brownian Signals: Information Quality, Quantity and Timing in Repeated Games
10 Pages Posted: 27 Dec 2015
Date Written: September 21, 2015
This paper examines different Brownian information structures for varying time intervals. We focus on the non-limit case and on the trade-offs between information quantity and quality to efficiently establish incentives. These two dimensions of information tend to complement each other when signals quality is sufficiently high. Otherwise, information quantity tends to replace information quality. Any conclusion depends crucially on the rate at which information quality improves or decays with respect to the discounting incentives.
Keywords: Repeated Games, Frequent Monitoring, Information Quantity, Information Quality
JEL Classification: C73, D82, D86
Suggested Citation: Suggested Citation