Informed middlemen and asymmetric information

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Date

2014

Authors

Kirysheva, I.

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Publisher

Nazarbayev University

Abstract

In this paper I look at a two-sided asymmetric information game where agents make a collaborative decision not knowing types of each other. An intermediary has full knowledge about the types of agents and can make a decision that brings information to some types. However, once he puts the information on the table agents are not obliged to pay him, which undermines his incentive to participate in the first place.

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Keywords

informed middlemen, asymmetric information

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