Strategic Information: New Directions and Applications

Introduction

In a world saturated with data, the role of information as a coordination device for economic activity is more and more central, and impacts phenomena such as financial crises, currency attacks, and social stability.

Importance of Information

Although the importance of information as a driving force is well established, current models of coordination and robustness are limited to the restricted class of binary actions supermodular games.

Methodological Advances

Following recent methodological advances of the PI as a proof of concept, the project offers a model of strategic types that will define the role of information in general strategic situations.

Divergent Methodology

Our methodology diverges from the conventional approach by reframing all information in relation to the game under study. Rather than considering information description as a distinct entity separate from the game itself, our approach centers on strategically relevant information within a particular, predetermined game context.

Project Overview

SInfoNiA will create new foundations for the analysis of information in economics and delve into new positive and normative implications of the theory as described in 7 work packages (WP).

Work Packages

1. WP1: Provides a model of strategic types for a wide array of games.

2. WP2: Develops new avenues to measure and value information.

3. WP3: Unifies strategic types with global games information structures.

4. WP4: Offers algorithms that will allow for wide applicability and dissemination of the methods.

5. WP5: Utilizes these methods to expand the global games frontier and analyze new models of financial stability.

6. WP6: Offers a broad analysis of the robustness of economic outcomes, including in trade and financial networks.

7. WP7: Takes a normative approach and provides joint design of information structures and incentives that efficiently implement desirable outcomes. It offers informational interventions to bring about changes in social norms, in particular in gender inequality.