Note: When clicking on a Digital Object Identifier (DOI) number, you will be taken to an external site maintained by the publisher. Some full text articles may not yet be available without a charge during the embargo (administrative interval).
Some links on this page may take you to non-federal websites. Their policies may differ from this site.
In mechanism design, the firm has an advantage over its customers in its knowledge of the state of the system, which can affect the utilities of all players. This poses the question: how can the firm utilize that information (and not additional financial incentives) to persuade customers to take actions that lead to higher revenue (or other firm utility)? When the firm is constrained to "cheap talk," and cannot credibly commit to a manner of signaling, the firm cannot change customer behavior in a meaningful way. Instead, we allow firm to commit to how they will signal in advance. Customersmore »