Strategically Acting on Information

TL;DR

This paper introduces a framework to analyze the strategic trade-off between acting on valuable information and avoiding detection in non-cooperative settings.

Contribution

It provides a novel model for understanding how agents optimally balance information exploitation and concealment.

Findings

Characterizes the optimal strategies for acting on information.

Identifies conditions under which agents should act more or less frequently.

Offers insights into strategic information use in competitive environments.

Abstract

In many non-cooperative settings, agents often possess useful information that provide an advantage over their opponent(s), but acting on such information too frequently can lead to detection. I develop a simple framework to analyze such a trade-off and characterize the optimal way in which to act on information.