nep-ict New Economics Papers
on Information and Communication Technologies
Issue of 2008‒01‒12
one paper chosen by
Walter Frisch
University Vienna

  1. Strategic Information Extraction Through Networks By Antonio Jimenez-Martinez

  1. By: Antonio Jimenez-Martinez (School of Economics, Universidad de Guanajuato)
    Abstract: We develop a model of information transmission in networks where agents decide on costly information extraction from their neighbors. Agents have incomplete and complementary information about the underlying state. For a exogenously given network, each agent decides first on information extraction from her neighbors and then, after processing the information extracted, takes an action. The payoff to each agent has two components: (i) a concern about oneÕs own action and (ii) a concern about the other agentsÕ actions or team concern. We formalize the extraction of information by considering that each agent is able, by incurring a cost, to induce each of her neighbors to send her a signal. Then, each receiver updates her beliefs according to BayesÕ rule. We characterize both the efficient and the equilibrium information extraction strategy profiles for the overall game and relate them to the network architecture.
    Keywords: Communication Networks, Incomplete Information, Information Extraction, Complementarities, Coordination
    JEL: C72 D82 D83 D85

This nep-ict issue is ©2008 by Walter Frisch. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.