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Bergemann, Dirk - 2014

In an economy of interacting agents with both idiosyncratic and aggregate shocks, we examine how the structure of private information influences aggregate volatility. The maximal aggregate volatility is attained in a noise free information structure in which the agents confound idiosyncratic and...

Persistent link: https://www.econbiz.de/10013045592

Bandit Problems

Bergemann, Dirk - 2006

We survey the literature on multi-armed bandit models and their applications in economics. The multi-armed bandit problem is a statistical decision model of an agent trying to optimize his decisions while improving his information at the same time. This classic problem has received much...

Persistent link: https://www.econbiz.de/10012783296

Dynamic Marginal Contribution Mechanism

Bergemann, Dirk - 2007

We consider truthful implementation of the socially efficient allocation in a dynamic private value environment in which agents receive private information over time. We propose a suitable generalization of the Vickrey-Clarke-Groves mechanism, based on the marginal contribution of each agent. In...

Persistent link: https://www.econbiz.de/10012776491

Information and Market Power

Bergemann, Dirk - 2018

We consider demand function competition with a ﬁnite number of agents and private information. We analyze how the structure of the private information shapes the market power of each agent and the price volatility. We show that any degree of market power can arise in the unique equilibrium...

Persistent link: https://www.econbiz.de/10012908597

Robust Predictions in Games with Incomplete Information

Bergemann, Dirk; Morris, Stephen - 2011

correlated equilibria in a class of games with quadratic payoffs and normally distributed uncertainty in terms of restrictions on … demand uncertainty and find newly optimal information policies via the Bayes correlated equilibria. Finally, we reverse the …

Persistent link: https://www.econbiz.de/10014175012

Robust Predictions in Games with Incomplete Information

Bergemann, Dirk; Morris, Stephen - 2011

which establishes a relationship between the set of Bayes Nash equilibria and the set of Bayes correlated equilibria. We … completely characterize the set of Bayes correlated equilibria in a class of games with quadratic payoffs and normally …

Persistent link: https://www.econbiz.de/10014177259

The Dynamic Pivot Mechanism

Bergemann, Dirk; Valimaki, Juuso - 2008

We consider truthful implementation of the socially efficient allocation in an independent private-value environment in which agents receive private information over time. We propose a suitable generalization of the pivot mechanism, based on the marginal contribution of each agent. In the...

Persistent link: https://www.econbiz.de/10014215953

Multi-Dimensional Mechanism Design with Limited Information

Bergemann, Dirk; Shen, Ji; Xu, Yun; Yeh, Edmund M. - 2012

We analyze a nonlinear pricing model with limited information. Each buyer can purchase a large variety, d, of goods. His preference for each good is represented by a scalar and his preference over d goods is represented by a d-dimensional vector. The type space of each buyer is given by a...

Persistent link: https://www.econbiz.de/10014170574

Entry and Vertical Differentiation

Bergemann, Dirk; Valimaki, Juuso - 2015

This paper analyzes the entry of new products into vertically differentiated markets where an entrant and an incumbent compete in quantities. The value of the new product is initially uncertain and new information is generated through purchases in the market. We derive the (unique) Markov...

Persistent link: https://www.econbiz.de/10014130098

Robust Predictions in Games with Incomplete Information

Bergemann, Dirk - 2013

equilibrium for some information structure is equal to the set of Bayes correlated equilibria. We completely characterize the set … of Bayes correlated equilibria in a class of games with quadratic payoffs and normally distributed uncertainty in terms … sharing among firms under demand uncertainty and find new optimal information policies via the Bayes correlated equilibria. We …

Persistent link: https://www.econbiz.de/10013084975