Information Transmission in Nested Sender-Receiver Games

We introduce a "nestedness" relation for a general class of sender-receiver games and compare equilibrium properties, in particular the amount of information transmitted, across games that are nested. Roughly, game is nested in game if the players's optimal actions are closer in game. We show that under some conditions, more information is transmitted in the nested game in the sense that the receiver's expected equilibrium payoff is higher. The results generalize the comparative statics and welfare comparisons with respect to preferences in the seminal paper of Crawford and Sobel (1982). We also derive new results with respect to changes in priors in addition to changes in preferences. We illustrate the usefulness of the results in three applications: (i) delegation to an intermediary with a different prior, the choice between centralization and delegation, and two-way communication with an informed principal.

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Source https://sciencespo.hal.science/hal-00973071
Author Chen, Ying, Gordon, Sidartha
Maintainer CCSD
Last Updated May 5, 2026, 16:56 (UTC)
Created May 5, 2026, 16:56 (UTC)
Identifier hal-00973071
Language en
Rights https://creativecommons.org/licenses/by-nd/4.0/
contributor Key Laboratory of Inorganic Functional Materials and Devices ; Shanghai Institute of Ceramics ; Chinese Academy of Sciences [Beijing] (CAS)-Chinese Academy of Sciences [Beijing] (CAS)
creator Chen, Ying
date 2014-04-05T00:00:00
harvest_object_id e807af53-496b-47fd-8e3b-ecaed207e4e5
harvest_source_id 3374d638-d20b-4672-ba96-a23232d55657
harvest_source_title test moissonnage SELUNE
metadata_modified 2024-11-12T00:00:00
relation info:eu-repo/semantics/altIdentifier/hdl/2441/5adcidkke9omt0s9p6m01j1rh
set_spec type:UNDEFINED