Bayesian Comparative Statics
37 Pages Posted: 20 Aug 2018 Last revised: 26 May 2021
Date Written: August 6, 2018
We study how changes to the informativeness of signals in Bayesian games and single-agent decision problems affect the distribution of equilibrium actions. Focusing on supermodular environments, we provide conditions under which a more precise private signal for one agent leads to an increasing-mean spread or a decreasing-mean spread of equilibrium actions for all agents. We apply our comparative statics to information disclosure games between a sender and many receivers and derive sufficient conditions on the primitive payoffs that lead to extremal disclosure of information.
Keywords: Comparative statics, supermodular order, convex order, information disclosure
JEL Classification: C44, C61, D42, D81
Suggested Citation: Suggested Citation