• Corpus ID: 220633054

Learning from Manipulable Signals

@article{Ekmekci2020LearningFM,
  title={Learning from Manipulable Signals},
  author={Mehmet Ekmekci and Leandro Gorno and Lucas Maestri and Jian Sun and Dong Wei},
  journal={arXiv: Theoretical Economics},
  year={2020}
}
We study a dynamic stopping game between a principal and an agent. The agent is privately informed about his type. The principal learns about the agent's type from a noisy performance measure, which can be manipulated by the agent via a costly and hidden action. We fully characterize the unique Markov equilibrium, and find that terminations/market crashes are often preceded by a spike in (expected) performance. Our model also predicts that, due to endogenous signal manipulation, too much… 

Figures from this paper

References

SHOWING 1-10 OF 48 REFERENCES
Two-Sided Learning and the Ratchet Principle
I study a class of continuous-time games of learning and imperfect monitoring. A long-run player and a market share a common prior about the initial value of a Gaussian hidden state, and learn about
Reputation and Screening in a Noisy Environment with Irreversible Actions
We introduce a class of two-player dynamic games to study the effectiveness of screening in a principal-agent problem. In every period, the principal chooses either to irreversibly stop the game or
Optimal entry timing
Reputation in Long-Run Relationships
We model a long-run relationship as an infinitely repeated game played by two equally patient agents. In each period, the agents play an extensive-form game of perfect information. There is
Reputation Effects Under Interdependent Values
  • H. Pei
  • Economics
    Econometrica
  • 2020
A patient player privately observes a persistent state and interacts with an infinite sequence of myopic uninformed players. The patient player is either a strategic type who maximizes his payoff or
Maintaining a Reputation when Strategies are Imperfectly Observed
This paper studies reputation effects in games with a single long-run player whose choice of stage-game strategy is imperfectly observed by his opponents. We obtain lower and upper bounds on the
Reputation and Equilibrium Selection in Games with a Patient Player
A single, long-run player plays a simultaneous-move stage game against a sequence of opponents who only play once, but observe all previous play. If there is a positive prior probability that the
Reputation and Perfection in Repeated Common Interest Games
Abstract We consider a wide class of repeated common interest games perturbed with one-sided incomplete information: one player (the informed player) might be a commitment type playing the Pareto
Dynamic Oligopoly with Incomplete Information
We consider learning and signalling in a dynamic Cournot oligopoly where firms have private information about their production costs and only observe the market price, which is subject to
...
...