Coordination and private information revelation

Abstract

This paper examines a persuasion game between two agents with one-sided asymmetric information, where the informed agent can reveal her private information prior to playing a Battle-of-the-Sexes coordination game. There is a close connection between the extent of information revelation and the possibility of coordination failure; while, in the absence of any coordination failure, there exist equilibria with full disclosure, in the presence of strategic uncertainty in coordination there exists an equilibrium with no information revelation. We provide a purification argument for the non-existence result, as well demonstrate that it is robust to several extensions, including both-sided asymmetric information and imprecise information revelation.